BTC/USD Analysis – January 07, 2022

Bitcoin Price Prediction

The BTC/USD was closed at $43,111.0 after a high of $43,777.0 and a low of $42,487.0. BTC/USD continued its bearish rally for the fifth consecutive session and fell to extend its losses amid the negative developments surrounding the BTC/USD environment. The CEO of an asset management firm and financial advisory, Devere Group, has predicted three countries will adopt bitcoin as legal tender this year. He seemed to be more bullish than the president of El Salvador, who predicted that two countries would make bitcoin their national currency this year. He said that low-income countries have long suffered because their currencies are weak and highly vulnerable to market changes, which triggers rampant inflation. He said that countries like Panama, Guatemala, and Honduras could adopt bitcoin this year due to their reliance on remittances similar to El Salvador's.

Meanwhile, the mayor of New York City, Eric Adams, has recently confirmed that he will take his first three pay checks in the leading cryptocurrency, Bitcoin. Adams joined as Mayor of New York City at the beginning of this year and pledged to take his first three pay checks in BTC, just like he said before taking the position. This confirmation by Adams should have supported the bitcoin prices, but BTC/USD remained on the downside for Thursday.

Furthermore, the US National Defence Fellow, Jason Lowery, has argued that the proof of work consensus model of Bitcoin and replaces their reliance on military might for digital property and money. For example, Jason Lowery is an officer in the US Space Force, and a US National Defence Fellow enrolled at MIT, whose full-time job is to research Bitcoin for the US Department of Defence. His master's thesis aims to investigate how proof-of-work miners are functionally equivalent to militaries and might be used as a stand-in for war in terms of gaining global consensus on the present state and chain of liberty and digital property.

Moreover, the United Kingdom's Advertising Standards Authority (ASA) has approved an official ban on two mobile application advertisements from popular trading platform Crypto.com that promoted the ease of purchasing cryptocurrencies like BTC and earning yield rewards on digital assets. The agency stated that the advertisements breached several financial watchdog rules, including failing to effectively state the risk potential of the investment, abusing consumers' lack of market understanding, and not specifying the limitations of purchasing crypto with credit cards. This news had a negative impact on BTC/USD prices.

BTC/USD Intraday Technical Levels

Support Resistance

42473.0 43763.0

41835.0 44415.0

41183.0 45053.0

Pivot point: 43125.0

BTC/USD - Technical Outlook

During the Asian session, the BTC/USD fell sharply to trade at the 41,636 level, having violated the support levels of 42,285 and 40,955 levels. The closing of candles under the 42,965 support zone suggests a strong selling bias in Bitcoin. On the lower side, BTC/USD’s immediate support stays at the 40,955 level. Conversely, the BTC/USD’s immediate resistance stays at 41,636 and 42,285 levels. Further on the higher side, the next resistance stays at the 43,613 level. The RSI and Stoch RSI are holding under 50, supporting a selling bias in Bitcoin. Lastly, the downward trendline is supporting a selling bias in BTC/USD. Good luck!