Bitcoin has been moving upwards since the start of the year until the recent price adjustment that was overdue. People expected prices to fall further and break the USD 30K downwards, but a strong momentum from Altcoins helped push the cryptocurrency market and net the price adjustments. Where are we currently and what to expect next for Bitcoin Prices?
Bitcoin Prices are currently at the Support price area
At the current time of writing, Bitcoin prices are USD 31,600 with a YTD performance of 9%. Not too shabby for 26 days into 2021. In a previous article, we predicted that the price of Bitcoin would most likely consolidate, more specifically with a support price of USD 31,500.
Today, we can clearly see that price-action translating in figure 1, showing how the price of USD 31,500 represented a strong support area. When the previous crash regarding the Double-Spend incident happened, a fakeout occurred which broke prices briefly below that area, only to recover shortly after.
What to expect next for BTC?
A vital indicator that helps to predict the price of Bitcoin, is looking at the Bitcoin option prices. In January 2021, around 120,300 contracts worth $3.7 billion are set to expire this Friday on major exchanges. In December 2020, the contracts that expired were less by 46% and sent prices through the roof, so Friday might be a highly volatile day for cryptocurrencies, and technical traders might see potential buying opportunities near that strong support area, sending prices upwards to the upper consolidation price area of 40,000, or decide to open short positions, hence the price of BTC breaking the USD 30k barrier downwards.
The whole Cryptocurrency market
In the past 24 hours, most major cryptocurrencies adjusted in prices and took their respective breathers to become in the red, with “Near Protocol” losing the most around 12%, and “Horizen” gaining the most around 16%:
1- Bitcoin (BTC) : – 5.45 %
2- Ether (ETH) : – 8.10 %
3- Tether (USDT) : 0 %
4- Polkadot (DOT) : – 7.53 %
5- Ripple (XRP) : – 4.16 %
6- Cardano (ADA) : – 4.63 %
7- Chainlink (LINK) : – 8.61 %
8- Litecoin (LTC): – 7.26 %
9- Bitcoin Cash (BCH) : – 5.83 %
10- Binance Coin (BNB): – 4.52 %
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Rudy Fares
