Bitcoin Price Forecast
Since January, BTC/USD has tried to break the psychological price range of $40,000, but in vain. Currently, Bitcoin is trending in between $32,000 and $38,000. As of the past week, bitcoin’s price performed numerous attempts to surpass the resistance level. On January 11th, there was a strong call sentiment as bulls bought the dips. Bitcoin is now trading at $36,385 as of this writing.
- Resistance Rates: $45,000, $46,000, $47,000
- Support Rates: $35,000, $34,000, $33,000
BTC/USD – Daily Chart
After retesting the $40,000 resistance, bitcoin price dropped and resumed consolidation close to the $35,000 support. The bulls have previously bought the dips to allow bitcoin price stay strictly above $35,000 support. Analysts predicted bitcoin to soar above the psychological resistance of $40,000. These assumptions were strengthened by President-elect, Joe Biden’s $1.9 trillion stimulus package. Although the market did not demonstrate any price rally, bitcoin traders are still very optimistic. In case the bulls will keep holding bitcoin above $35,000 support, the upside momentum is possible, thus BTC is expected to touch the $40,000 resistance. However, in case the $35,000 BTC support breaks, further decline may also take place.
Neil Liversidge is Against Crypto Transactions
Bitcoin price could also be affected by critics and financial veterans, such as Neil Liversidge, an experienced financial advisor and owner of an independent financial advisory firm, West Riding Personal Financial Solutions. Liversidge proposed the government of the United Kingdom to prohibit cryptocurrency transactions. His petition is as follows: “Legislate to prohibit the payment by or acceptance of crypto currencies by UK resident businesses or individuals, and require UK regulators (the FCA and PRA) to prohibit transactions by UK financial institutions in crypto currencies such as Bitcoin.”
Liversidge argues that digital assets, such as Bitcoin have no fundamental value behind and district the society, as they are widely used by the criminal world. He added that a crypto transactions ban will reduce the criminal activity in the U.K. He also noted that digital currencies such as Bitcoin were used for illicit activities. He argued that destroying their financial base will reduce criminal activity.
BTC/USD – Daily Chart
Meanwhile, Bitcoin is consolidating above $36,000 support in expectation of the upside momentum. A boost above the $40,000 resistance rate will induce price growth. A current retracement level suggests that BTC price will rise to level 1.272 Fibonacci extensions or the high of $48,665.90.