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Weekly Bitcoin Technical Analysis (January 17th, 2022)
History for the week (From 10th - 16th, Jan 2022)
Opening price: $41,864, closing price: $43,071 => Spread is $1207, up about 2.88%).
Highest price: $44,500, lowest price $39,650 => Spread is $4850 (According to data from Binance exchange).
BTC/USDT weekly chart
For the past several weeks, Bitcoin price has moved sideways and remained above the trendline support line. With the formation of a spinning candlestick last week, we cannot confirm that this is a reversal signal, end the selling pressure of the market.
Currently, we can only rely on the trendline support to speculate on the long-term Bitcoin price trend.
If the price does not have a weekly candle close below the $40,000 area, we can expect Bitcoin to reverse its trend, and the first resistance for this uptrend at $53,000 area.
Contrary to this assumption, if the price fails and close below $40,000 on the weekly chart, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will then attempt to sink the price below the critical support at $28,000. If they succeed, the pair could extend its downtrend.
BTC/USDT 1D chart
On the daily chart, Bitcoin is moving below the diagonal resistance line. The indicators as MACD is supporting the uptrend. The possibility of Bitcoin breaking this trendline to push the price to the $53,000 area is higher than the bearish trend fall to $28,000 area.
In conclusion, Bitcoin trend is likely to rally higher towards $53,000 this week. However, we also need to have contingency plans to limit the risk of our predictions.