Bitcoin price prediction: BTC towards $42000, analyst

Description

TL;DR Breakdown Bitcoin price prediction expects a rise to $42000 and above. Strong resistance currently lies at the $37000 mark. Strong support currently lies at the $36000 mark. The king of cryptocurrencies appears to have stabilized in the range of $36,000 as it has hovered at that range after it fell from the highs of … Read more

TL;DR Breakdown

  • Bitcoin price prediction expects a rise to $42000 and above.
  • Strong resistance currently lies at the $37000 mark.
  • Strong support currently lies at the $36000 mark.

The king of cryptocurrencies appears to have stabilized in the range of $36,000 as it has hovered at that range after it fell from the highs of $41,000. The 24-hour low for Bitcoin was $34,820, while the 24-hour high was $37,385. At the time of writing, Bitcoin was priced at $36,676.

Out of the total 26 technical indicators, 16 are giving out a buy signal with 10 neutral signals and just two sell signals. Nine of the oscillators are neutral with two sell indicators and zero buys. 16 of the 17 moving averages are at buy positions with one neutral, and zero sells.

Bitcoin price prediction: What to expect?

Analyst Goldbug has identified some key levels for the cryptocurrency in his Bitcoin price prediction. Per the analyst, Bitcoin is headed upwards on an ascending trend line. The potential target of the analyst is in the range of $45,000 and $50,000 but the analyst also warns of a few fake-out levels that the cryptocurrency is likely to encounter on its way. The analyst states that the $42,000 price level is a major fake-out.

Bitcoin price prediction by analyst Goldbug

If Bitcoin fails at this price level, then the cryptocurrency’s fall to staggeringly low levels will become imminent. A breakout to the downside from the target price range is also likely if Bitcoin does not stabilize in that range. The analyst believes that $32,000 is a key support level, and if the price of the cryptocurrency closes below this level, then the ascending trend line will be tested. If Bitcoin fails to hold the trend line, then the main support area for Bitcoin will lie in the range of $16,500 and $20,000.

Analyst Trading Shot identified the king in a triangle formation in their Bitcoin price prediction. Still, Bitcoin has moved towards a smaller triangle inside the formation developed by lower highs and higher lows. The MA50 and MA100 are about to cross each other, and the Moving Average Convergence/Divergence also formed a bullish cross. The Relative Strength Index, on an uptrend, is forming higher lows. The analyst believes that a breakout from the triangle is likely.

$3.7 billion Bitcoin option contracts expiring

The options market for Bitcoin has given access to trading the cryptocurrency for those who cannot hold spot positions. The options contracts give investors the right to trade the cryptocurrency at a set price within a set time period. Options worth 101,000 Bitcoins, or $3.7 billion, are set to expire on 29 January 2021. This means that, although not all, close to 101,000 Bitcoins will be open for trading once again by the end of the month.

The figure was a record high, with the previous record at $2.4 billion in December 2020. There are currently more “call” (buy) options than “put” (sell) options. However, there was a decrease in the call options after Bitcoin took a hit. The majority of the positions will drive Bitcoin prices accordingly. While Bitcoin price predictions are also optimistic, per the current estimates, Bitcoin is likely to have a price hike as options contracts’ buyers dominate the market towards the end of the month.

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