Bitcoin Price Prediction
The BTC/USD ended the day at $46,445.0, having reached a high of $47,578.0 and a low of $45,701. The BTC/USD pair dropped for another session on Monday and extended its loss, mainly because of the strong dollar. Last month, the Twitter account of Indian Prime Minister Narendra Modi was hacked and was used to make posts about a bitcoin giveaway scam. On Sunday, a similar event took place in which the Twitter accounts of the Indian Medical Association (IMA), the Indian Council of World Affairs (ICWA), and Mann Deshi Mahila Bank were also hacked.
The perpetrators changed the name and profile picture of the IMA account to that of Tesla's CEO, Elon Musk, and posted many tweets promoting cryptocurrencies. The issue was solved quickly, but these accounts' malicious tweets remained visible on Twitter. The increased number of cyber-crimes and crypto involvement in these crimes added negative pressure on BTC/USD, which ultimately dragged the leading crypto to the downside in the early days of the New Year.
Furthermore, the BTC/USD declined on Monday amid the rising strength of the US dollar. The greenback was strengthening due to rising expectations of Federal Reserve rate hikes this year. These expectations pushed US Treasury yields up to 1.64% and the DXY to 96.33. The strength of the US dollar then weighed on the leading cryptocurrency, Bitcoin, as both share a negative correlation.
On the other hand, the co-founder and managing partner at Nexo, Antoni Trenchev, has said that bitcoin could see further upside and surge as high as $100,000 by the middle of 2022. Nexo claims to be the world's largest lending institution in the digital finance industry and has issued more than $6 billion in credit and manages assets for more than 2.5 million users globally. This prediction by the Nexo leader added some positive momentum in the BTC/USD ecosystem, which, however, failed to reverse the bearish momentum on Monday.
BTC/USD Intraday Technical Levels
Support Resistance
45571.4 47448.4
44697.7 48451.7
43694.4 49325.4
Pivot Point: 46574.7
BTC/USD - Technical Outlook
Bitcoin's price failed to get above $48,000 and began a new drop. BTC dropped underneath the $47,500 and $47,200 support levels, moving into a bearish zone. The price has even fallen below $46,500 and the 100 hourly simple moving average. A bottom near $45,707 was formed, and the price is now holding losses. It tested the recent slide's 23.6 percent Fib retracement level from the swing high of $47,950 to the low of $45,707.
If bitcoin does not return over $47,000, it may continue to fall. An immediate support level is around $46,000; the first significant support is close to $45,800. A break below $45,800 on the downside might push the price much lower. In the aforementioned scenario, the price may fall toward the $43,500 mark in the next few sessions. All the best!
JOIN LHFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.