BTC/USD Reaches Overbought Region, Faces Rejection at the $35,000 High


Bitcoin (BTC) Price Prediction – January 6, 2021
Today, BTC/USD has resumed an upside momentum by breaking the $35,000 resistance. About three days ago, BTC faced rejection at $34,873 after the bulls broke the psychological price level of $30,000. BTC rally continued until it was resisted at the $35,000 price level.

Resistance Levels: $38,000, $39,000, $40,000
Support Levels: $25,000, $24,000, $23,000

BTC/USD – Daily Chart

Following its rejection on January 3, at the $35,000 resistance zone, Bitcoin plunged to $28,540 and pulled back. This singular price action brought into liquidations traders who are on long trades. Nonetheless, the bulls buy the dips from the $28,000 low. Buyers pushed BTC upward but faced a minor resistance at $32,000 high. After three days of correction, the bulls broke the resistance at $32,000 and $35,000. The breakout above $35,000 resistance has not been convincing as bulls struggle to sustain above the recent high. It is predictable that each time Bitcoin makes a new high, the king coin will make some form of correction. This correction gives room for further upside momentum.

Mark Cuban Intends to Run as President of the United States if BTC Hits $1 Million
Mark Cuban is the owner of Dallas Mavericks who said he would give out Bitcoin to every citizen when he becomes president of the United States. He said he would run as a United States presidential candidate under a specific set of circumstances. According to him, he said: “I’ll run if BTC gets to $1m AND we can get commitments to donate 350 BTC to the Treasury each of the 4 yrs so that we can give 1 satoshi to every citizen each year, that they must hold for 10 years,” the Shark Tank star tweeted on Tuesday. In other developments, Cuban has spoken about Bitcoin on many occasions as “a store of value like gold that is more religion than a solution to any problem”. Cuban’s overall view of Bitcoin is the same as the industry’s outlook on the coin. Cuban and crypto industry gurus see the digital asset as a store of value similar to gold.

BTC/USD – 4 Hour Chart

Meanwhile, Bitcoin’s upward move is likely. The RSI and stochastic are indicating an overbought condition of the coin. Bitcoin is likely to correct before a resumption of upside momentum. The Fibonacci tool has indicated a possible move of the coin. On January 3 uptrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that the market will rise and reach level 2.618 Fibonacci retracement level. That is Bitcoin will reach a high of $44,617.30.



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