The price of Bitcoin hit the low of 39,550, on January 10, due to expectations that the Fed could make up to 4 increases in the interest rate until the end of 2022.
However, inflation data and Powell's testimony put pressure on the US dollar, which weakened. Its index fell to support levels of 94.86. This benefits its rivals and as well as BTC.
Bitcoin and altcoins took advantage of the weak US dollar and we saw BTC's technical bounce above the psychological level of 40,000.
The crypto is currently trading at 43,400, approaching the upper border of the downtrend channel located at 45,816. The 21 SMA is located at this level, which could offer strong resistance.
A breakout and consolidation above the 21 SMA around 45,800 could start a new bullish wave and the price could rise to the resistance zone of 49,055 (200 EMA) and up to the psychological level of 50,000.
On the contrary, if in the next few hours, the top of the bearish channel offers resistance, and BTC does not manage to overcome this level, it could resume its downward movement towards -2/8 Murray located at 37,500.
Support and Resistance Levels for January 13 - 14, 2022
Resistance (3) 46,322
Resistance (2) 45,349
Resistance (1) 44,527
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Support (1) 42,625
Support (2) 41,544
Support (3) 40,722
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