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Bitcoin Market Analysis – 14.01.2021

It was interesting to see BTC, bouncing back from the 28% correction, which can be considered healthy for more upside. Bitcoin’s break above the $35,000 resistance shows bulls are serious about retaking $40,000 any moment from now.

Reclaiming the $36,000 level as support may also assist with squashing the infantile narrative that BTC was entering a new bear market after this week’s 28% plunge shaved off $200 billion from the total cryptocurrency market capitalization.

Institutional accumulations, more than what is mined every day, has led to a higher demand of BTC.

As Bitcoin spent the early part of the day trading between $32,000 and $35,000, while the leading Altcoins indicator -Ethereum (ETH) pushed higher, gaining 3.96% to trade at $1,120 at the time of writing. This shows that, the entire Altcoins markets are still healthy.

Bitcoin
Looking at the BTC 4-hours chart, today’s recovery from the $34,000 level also appears to have invalidated what looked to be a bearish head and shoulders pattern forming on the 4-hour timeframe.

We could spot a short term bottom with heading shoulder. Could this be a false bull break? No, it’s real. Volume is breaking sideways while the price is consolidating.

Fig.1.Bitcoin: Head and shoulders pattern forming on the 4-hour timeframe.
Paid Content by Peter Brendt and his partners at bitcoin.live

 

From the BTC daily chart, we have been fighting to hold this MA 200/middle BB area, with a breakout of 34k horizontal support. This recovery at $35,500 has shown a breakthrough of $33,000-$34,000 areas which would warrant a possible continuation toward $38,000 and even surpass $42,000 all-time high in few days from now.

Fig2. Bitcoin: The triangular formation shows a breakout from the area support. Source: bitcoin.live

BTC looks unstoppable at this time and keep buying the dip.

Ethereum
Ethereum is still in pretty uptrend here as it rallied to find support at the MA 20 as did BTC. For now let’s see if this bounce can hold. We should also recognize EMA as potential resistance should the price fail to definitively recapture. With all the indicators, $1400 area resistance is still within reach. We should put our stop loss at the new support level of $1063.

Fig.3 Ethereum: Move the stop loss at the new support level of $1063. Source: bitcoin.live

It’s still bullish all the way

Top Takeaways

$BTC $38,000 – 42k area resistance
$ETH $1080 area support $1400 area resistance

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service