Bitcoin (BTC) waiting for a rebound: Crypto Analysis of January 23, 2023

Bitcoin has entered a corrective phase, leading to a breach of the $40,000 mark. Let’s look at the future outlook for BTC’s price together.

Situation of Bitcoin (BTC)

As mentioned in the analysis of January 16, Bitcoin has started a correction phase. Indeed, the price of Bitcoin has fallen from $49,000 to close last week at around $41,500. This Monday, Bitcoin failed to counter this bearish pressure. At the time of writing, it is trading around $39,500. Thus, it appears that the $40,000 support level has been breached downwards. Although Bitcoin’s medium and long-term trend remains bullish, the continuation of its decline has driven its price below the 50-day moving average. This development foreshadows the possibility of a trend reversal, thus prompting investors to exercise increased caution and consider readjusting their strategies.

Regarding oscillators, they are currently below the median threshold. From an optimistic point of view, this could indicate that Bitcoin is oversold, suggesting that it might be undervalued. Conversely, from a pessimistic viewpoint, it could mean that the momentum is turning bearish. Notably, the presence of a divergence between these oscillators and the Bitcoin price would reinforce this idea.

The current technical analysis was carried out in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. Today a trainer at Family Trading, a community of thousands of self-trading traders active since 2017. Here you will find Lives, educational content, and mutual assistance around the financial markets in a professional and warm atmosphere.

Focus on Derivatives (BTCUSDT)

The BTC/USD liquidation heatmap shows that Bitcoin has recently reached the $39,000 to $40,000 area, where many orders were pending. For now, the price seems to stabilize in this area, reflecting a period of uncertainty among investors. If the price fails to hold at this level, the next significant liquidation area under its current price is around $38,000, even $37,000. Approaching the market at this level could lead to a massive trigger of orders, which might increase the volatility of the cryptocurrency. Therefore, these areas represent major points of interest for investors.

Scenarios for the Bitcoin (BTC) Price

If the price of Bitcoin manages to re-enter the $40,000 level, we could anticipate a new rise to the threshold of $45,000. The next resistance to consider, if the bullish movement continues, would be $49,000 to $50,000. At this point, this would represent a rise close to +24%.

If the price of Bitcoin fails to re-enter the $40,000 level, a return to the $38,000 level could be envisaged. The next level to consider, if the bearish movement continues, would be around $37,000 to $36,000. At this point, this would represent a decline close to -8%.

Conclusion

Bitcoin seems inclined to continue the downward trend it recently began. Although it’s still too early to assert that the overall trend is questioned, it’s natural for investors to worry and consider hedging against this possibility. Is this situation related to the news around Grayscale? What’s certain is that it will be crucial to watch the price reaction to different key levels closely to confirm or negate the current assumptions. It is also important to stay alert to potential “fake outs” and market “squeezes” in each scenario. Finally, we should remember that these analyses are based only on technical criteria and that cryptocurrency prices can otherwise evolve quickly based on more fundamental factors.