The overall crypto market has reacted to the release of recent inflation data by posting lower quotes: at the time of writing, BTC/USD remained below $20,000 and was trading at $19,084. The cryptocurrency market is worth $0.914 trillion ($0.935 trillion a week ago). The Crypto Fear & Greed Index has only increased by one point in seven days, from 23 to 24, and remains in the Extreme Fear zone. During the week, Bitcoin rose from lows of $18,131, up nearly 1.2%, and reached a daily high of $19,554 on the prior day, but this minor gain masks the true fairground ride, as Bitcoin was down today nearly 0.5% on the daily, approaching $19,000. Meanwhile, in the near term, BTC bulls can restore market confidence if prices gain a foothold above $20,000. There are now 4.5 million more active investors in the bitcoin network as of January 1, 2022. In the last few weeks alone, there have been 10.7 million bitcoin addresses with a balance of at least 0.01 BTC. Amidst the flagship cryptocurrency’s prolonged decline in value relative to its all-time high, 47% of holders are still in the black.
Key Levels
Resistance Levels: $25,000, $22,000, $20,000
Support Levels: $19,000, $17,000, $15,000
BTC/USD Daily ChartThe BTC/USD pair has been trading sideways as it continues changing along the $19,000 handle. The world’s largest cryptocurrency is still rangebound at less than $20,000. It is practically impossible to be overly bullish while it is trading below the daily moving average (MA 50); what is more likely is that the macro bear market may continue, bringing the yearly low of $17,567, back into play.
Bitcoin may rally above $20,000 once more if buyers remain interested before breaking through the $25,000 barrier. It’s a risky move to end a daily candle above the $22,000 level, but it might lead to Bitcoin’s first noticeably higher low since the beginning of October, supporting the bullish argument.
BTC/USD 4-Hour ChartBTC/USD fluctuates between gains and losses on the 4-hour chart while staying within a lower channel below the 4-hour moving averages (MA 50 & MA 200), with a split in any direction being possible. However, when considering the structure, the trend may go either way because there are many reasonable levels of support and resistance on both sides.
However, a breach of the falling 4-hour MA 200 at $19,500 may occur if the buyers take control. In the event of a lower breach, support may decline, with the bears setting a price target of $16,000. At the time of writing, the short-term Relative Strength Index (RSI) has dipped just below the 50-line level, supporting sideways trade.
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