Bitcoin (BTC) Price Prediction – January 22, 2021
Bitcoin bulls made three unsuccessful attempts to break the $42,000 resistance. The price action formed a bearish triple top pattern. This causes Bitcoin to further depreciate on the downside. After the breakdown, the BTC price has returned to the previous price range.
Resistance Levels: $45,000, $46,000, $47,000
Support Levels: $35,000, $34,000, $33,000
Following the bearish triple top pattern formation, BTC/USD fell to $33,552 low. The long candlestick tail indicates that the bulls have bought the dips as Bitcoin resumes upward. The upward move is facing another rejection at the $38,000 high. Given the rejection at $38,000, Bitcoin is falling and approaching the low at $35,000. The bottom line is that if price breaks below $35,000, there is a tendency for the BTC price to fall to the $28,000 support. Conversely, if the support at $35,000 holds, Bitcoin will be range-bound between $35,000 and $42,000. Today, BTC/USD is trading at $36,460.00 at the time of writing.
Hong Kong Regulators Ready to Ban Bitcoin Retail Trading
Hong Kong’s FSTB is called the Financial Services and the Treasury Bureau. The regulatory body has moved to ban retail trading in Hong Kong after months of intense speculation. If the FSTB proposal is passed by the city’s legislature, only millionaires will be allowed to trade Bitcoin and cryptocurrencies in Hong Kong. According to Hong Kong law, only individuals with portfolios worth 8 million Hong Kong dollars (about $1 million) qualify as professional investors. This crypto trading limitation in Hong Kong to persons with portfolios worth $1 million, will exclude 93% of the city’s population from gaining access to cryptocurrencies. Stakeholders in Hong Kong have expressed their dissatisfaction with the plan, arguing that the move was contrary to the government’s goal of encouraging financial innovation.
Meanwhile, BTC/USD is falling after rejection at the $38,000 high. The Fibonacci tool has indicated a further downward movement of the coin. On April 25 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that Bitcoin will fall to level 2.0 Fibonacci extension or level $29,499.80. From the price action, the BTC price is falling and approaching the $35,000 support.