Is $42K On Cards For Bitcoin (BTC)!!

By Rekha chauhan
January 31, 2022 Updated January 31, 2022
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On the last day of January, the Bitcoin (BTC) price is still struggling to come out of the bear’s grip. After testing the lows near $32,933.31 on January 24, the price test the recent highs as investors want to participate in some bottom-buying opportunities.

  • Bitcoin (BTC) trades in a familiar range on the last day of the month.
  • In January BTC depreciates almost 31% in value.
  • Investors ready to test 200-EMA near $42k.

The US futures are poised for lower opening indicating a bumpy road for the riskier digital currency recovery. At the press-time, BTC/USD is trading at $37,220, down 1.80% for the day. The 24-hour trading volume stands at $16, 372,465,324 with the live market cap of $704,989,784,572 as per the CoinmarketCap.

Bitcoin awaits Symmetrical Triangle breakout

On the 4-hour chart, BTC/USD has fallen 23% after making highs at $43,511.99. This also coincides with the breach of the 20 DMA on the same day. The bulls recovered on January 24 testing the lows of $32,933.33.

Source: Trading view

The formation of a “Symmetrical triangle” formation marks a state of indecision among investors. The Bitcoin (BTC) price has been facing selling pressure near the upper trend line of the triangle. However, BTC is in the consolidation phase Wednesday swinging in between the range of $38k and $36k.

The momentum oscillator, the daily relative strength index (RSI) trades at 46 indicating BTC bears are still enjoying the limelight. Furthermore, the price slipped below the 20 DMA making a setup for a bearish breakdown.

A decisive break below today’s session will result in the testing of the $34k horizontal support level. Furthermore, the price could dive toward $30k, the levels last visible in July.

On the flip side, a break above the highs made on January 29 could see the immediate resistance at the psychological $40k mark.

 

 

 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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