Two-way pressure – Will Bitcoin (BTC) finally be able to permanently break out of its $44,000-$46,000 containment zone by the end of January 2022? The bulls are pushing, but the bears are also responding in the markets.
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Bitcoin at $44,000: the bear wall before the $46,000 block
Bitcoin rises to around $44,426 on Bitfinex yesterday, January 13, 2022. It suffered a strong rejection there, quickly losing the $44,000, then the $43,000. Bitcoin is trading at $42,701 at the time of writing, and is currently in a daily loss of 2.58%.
While this rejection shows the existence of a relatively strong resistance at $44,000, trader Michaël van de Poppe expects a a first test of $46,000 which should probably, according to him, end in failure: “I doubt that we will cross it all at once”.
He further indicates in the chart shared in his tweet today, that bitcoin should break through the resistance zone around $45,000 to see a bullish acceleration.
Trader Rekt Capital highlighted in a chart, that bitcoin enjoyed strong support from the $43,000-$45,000 area throughout 2021. This area, however, became currently a major resistance.
New structure for bitcoin: finally a marked trend?
Can Bitcoin break through these major resistances, or will the bulls end up losing the $40,000s yet again? Rekt Capital valued that bitcoin “could reveal a new market structure in the coming days and weeks.
Will this structure only increase fears of a bull market over several months, or even all of 2022, or will it allow bitcoin to finally return to a bullish trend in the short term?
Volatilities may be on the rise in the coming weeks, with a possible short squeeze or an acceleration of bitcoin’s bull run given data from derivatives markets.
Inflation has given the necessary momentum to BTC bulls as they attempt to reclaim former key supports. This week’s weekly closing level will already prove crucial for the bullish recovery, provided bitcoin manages to recover on this time frame the 50-week exponential moving average as support.
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