Bitcoin and the overall cryptocurrency market are in mild recovery since global markets fell on US Dollar recovery in the prior week. Bitcoin briefly crossed the $40,000 support for the first time after September 2021 on Jan. 10 to the $39,650 low level. BTC started the week on a steadier footing as selling eased above the $40,000 correction territory. The uptick in price might continue to erase losses for the second straight day. Bitcoin surged faster during the session to trade at a $44,147 intraday high. At the time of this analysis, BTC/USD is exchanging at $43,748. The release of US inflation statistics today takes the shine off Bitcoin bears as investors grew increasingly doubtful that inflationary pressures will abate quickly. Inflation in the United States reached an estimated 7% in December, as per data from the US Bureau of Labor Statistics. Following the official release, Bitcoin bulls post a positive advance past $44,000.
Key Levels
Resistance Levels: $50,000, $47,000, $45,000
Support Levels: $43,000, $40,000, $37,500
BTC/USD Daily ChartAs seen on the daily chart, BTC/USD is heading marginally north after the bounce from the $40,000 support level, however, the pullback from the moving average (MA 200) in the previous sessions signals a strong negative momentum in the broader outlook. Bitcoin is trying to regain some losses in the very near term.
However, from the technical view, an impending death cross is suggesting a flattening movement instead of a bearish bias as BTC/USD may range slightly below MA 200. The rebound on the $40,000 comes with a bullish dragonfly Doji candlestick as strong support. The risks to the outlook persist, and trade could become rangebound over the next few days.
BTC/USD 4-Hour ChartOn the 4-hour time frame, the moving averages (MA’s 50 & 200) are in a bearish bias as bulls overcome the $43,000 barrier during the session. Meanwhile, the 4-hour RSI is pointing up in the positive territory, reflecting a continuation of bullish forces in the short term. A break could shift buyers’ attention towards the support turned resistance level at $45,000.
In a positive scenario, if buyers pilot north of the $45,000 resistance obstacle, the price may aim for the moving average (200) and $47,000 level. Should bears return, BTC’s initial support might be at the $42,000 hurdle. A decisive move below this point could increase selling pressures, opening the door towards the low at $39,650.
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