Bitcoin Bulls Slips, but Will BTC/USD Ever Break $42k?

The Bitcoin price is a few thousand bucks away from its all-time high printed last week. As per Coinbase data, the BTC/USD all-time high is $41,986.

This is more than double the 2017 highs; a feat achieved spectacularly in less than a month.

At the time of writing (Jan 11), the path of least resistance is still upwards. Trading at $35.5, the BTC/USD price is bullish, gaining seven percent in the last week of trading. Therefore, albeit the contraction, buyers are in the upper hand.

Confirming this is the decent participation level and dominance of the digital gold.

The average daily trading volume is up 38 percent on the last day to $74.5 billion, hinting at trader participation that may drive prices two ways: Either higher to above $42k or lower back to $30k in profit-taking.

Bitcoin (BTC) Price Overview

The path of least resistance, despite the current dump, is still northwards. Propping Bitcoin bulls are solid fundamentals, including favorable on-chain metrics.

The Bitcoin price posted a new all-time high of around $42k.

Accordingly, this is an important reaction point for swing traders in the immediate term. On the flip side, last week’s trade range will determine the short-term trajectory depending on if bulls succeed or sellers take over.

As of writing-Jan 11, the BTC/USD price is oscillating within a $14k range with lows at around $28k.

In an uptrend, immediate reaction points for Bitcoin bulls—determining the short-term trend, will be at $42k and $28k—levels to watch out for.

Bitcoin (BTC) Market Movers

Bitcoin is one of the largest transactional platforms in the world.

Supporters say in the mid of censorship by Facebook, Twitter, and Google, the network is the only true haven.

Have you learned yet?

1. Twitter, Google, Apple, Facebook, etc. are trusted third parties.
2. Trusted third parties are security holes.
3. Bitcoin doesn't require a trusted third party.

— Jimmy Song (송재준) (@jimmysong) January 10, 2021

For people seeking to control and flexibility, the reliability of the network is unmatched.

Your bank is closed right now, but #Bitcoin and Ether $ETH are open for business

— Tyler Winklevoss (@tyler) January 10, 2021

The Bitcoin network is now worth more than Facebook and some of the world’s leading banks:

We can. Bitcoin is now more valuable than Facebook. Ethereum is worth $150B.

Over the next decade, decentralized blockchain-based services will provide morally, technically, and financially superior alternatives to American & Chinese tech companies alike.

Rest of World FTW. https://t.co/9QnXi1CVsF

— Balaji Srinivasan (@balajis) January 10, 2021

Despite its mega-valuation and parabolic rise in the last few months, some analysts are calling it tops. They cite activity by miners.

According to Byte Tree, miners have been consistently dumping their holdings since December. However, the strong institutional buying power kept soaking their liquidation.

Based on this data, Ki-Young Ju predicted prices to fall:

Miner Position Index looks enough to make a local top. They're selling $BTC.

I'm going to punt a small short to scalp $BTC in this short-term bearish market.

Chart 👉 https://t.co/RbSJ9xbC56 pic.twitter.com/7RbQN7BgwW

— Ki Young Ju 주기영 (@ki_young_ju) January 10, 2021

And it has.

Bitcoin (BTC) Price Prediction

The Bitcoin price is still bullish but down over $7k from its all-time high. However, for buyers to be in charge, a break above $42k is essential.

The 4-HR chart shows that the BTC/USD has been recoiling from $42k, trending lower with relatively high trading volumes.

Based on last week’s price action, the support zone is between $34.5k and $30k. These levels flash with the 50 and 78.6 percent Fibonacci retracement lines.

Accordingly, if bears press lower, confirming Jan 10 losses, risk-averse traders may find an opportunity to unload on every high with targets at $30k or $28k—the 78.6 percent Fibonacci level and last week’s lows, respectively.

On the flip side, if prices are steady and gain above $42k, buyers can aim at $50k—the 2.68 Fibonacci extension level of the 2018 to 2020 trade range.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.