Bitcoin Price Prediction
During Monday's Asian trading session, the BTC/USD coin failed to extend its previous week's recovery rally and hit an intra-day low of $46,740.9 level. However, Bitcoin's price could not rise beyond $48,500 and began a new downward trend. BTC moved into a negative zone after trading below the $48,000 and $47,500 levels. However, the reason for its downward tragedy could be tied to the ongoing risk-off sentiment in the crypto market, which tends to undermine most of the cryptocurrencies. The declines in Bitcoin were relatively unaffected by the positive predictions relating to Bitcoin for 2022.
El Salvador's president predicts that two more countries will legalize bitcoin this year. Meanwhile, he anticipates the development of El Salvador's Bitcoin City to begin this year, and the country's volcano bonds will be oversubscribed. The price of Bitcoin may continue to fall if it fails to recover over $48,000. Strong support exists at or near the $46,400 level. Near $46,100 is the first significant support. If the price falls below $46,100, it may fall to the $45,500 support level. Further losses could trigger a deeper drop below the $45,000 support level. The price might drop to $43,200 in this scenario. Elsewhere, the broad-based US dollar strength was seen as one of the key factors that kept the BTC/USD coin down. BTC/USD is presently trading at 47,121.0, with a range of 46,740.9 to 47,292.0.
According to sources, El Salvador's president has made six bitcoin forecasts for 2022. This year, he expects two more countries to recognize bitcoin as a legal currency. Meanwhile, he anticipates the development of El Salvador's Bitcoin City to begin this year, and the country's volcano bonds will be oversubscribed. President Bukele also expects BTC to hit $100,000 in value. Since bitcoin became the country's official currency, El Salvador has purchased around 1,391 BTC. Thus, the optimistic predictions regarding Bitcoin futures have not had any notable impact on the BTC/USD coins so far.
Elsewhere, the finance expert at the University of Pennsylvania's Wharton School has issued a warning about inflation and the Fed raising rates far more frequently than the market anticipates. He also stated that for millennials, bitcoin had become the new gold.
On Monday morning, the dollar rose in Asia, but it had a quiet start to 2022 because of holidays in many key Asia-Pacific markets. Market sentiment is still being influenced by the global spread of the omicron COVID-19 strain, which is boosting safe-haven demand. Even though the number of cases in the western Chinese city of Xi'an has decreased, statistics from Johns Hopkins University show that the global number of cases has surpassed 290 million as of January 3. The US Dollar Index, which tracks the greenback against a bucket of other currencies, was up 0.29% to 95.870.
US dollar traders will have a busy week ahead of them. The ISM data, the Federal Open Market Committee minutes, and nonfarm payrolls at the end of the week will be the calendar's highlights. In addition, US President Joe Biden's selections for three Federal Reserve governor seats may attract notice.
BTC/USD Intraday Technical Levels
Pivot Point: 46648.07
BTC/USD - Technical Outlook
On Monday, the BTC/USD is supported above the 46,648 level, having surged above the 46,618 pivot point level. On the higher side, the BTC/USD may find immediate resistance at the 47,969 level, and a break above this exposes the coin towards 48,825 or 49,879 resistance levels.
On the downside, 46,648 is acting as a major support and a break below this exposes the coin towards the 46,058 level. The RSI and StochRSI are holding above the 50 level, supporting an uptrend in Bitcoin. Therefore, the bullish bias dominates over the 46,648 level and vice versa. All the best!
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