FX.co ★ Technical Analysis of BTC/USD for January 3, 2022

Crypto Industry News:

Salvadoran President Nayib Bukele today shared five bullish forecasts for Bitcoin's performance for 2022.

Last year, El Salvador became the first country to adopt Bitcoin as legal tender under the Bukele presidency as a countermeasure to rising inflation in the country. Since legalization, the president has raised 1,370 BTC from the country's reserve and reinvested unrealized gains in new infrastructure projects, including a hospital and school.

President Bukele predicted that two more countries would join El Salvador to adopt Bitcoin as legal tender in 2022. That same year, he is expecting a bull wave that will lead to a new record high of 100,000 BTC.

Bukele also predicts the upcoming spike in El Salvador's two internal BTC initiatives - Bitcoin City and Volcano bonds. According to earlier reports, the president predicts that Bitcoin City will become a fully functional city with residential areas, shopping malls, restaurants, a port, "everything around Bitcoin".

According to the president, "The construction of Bitcoin City will begin" this year, which means the development of a virtual city based on BTC bonds worth 1 billion dollars. Along with this development, it predicts an oversubscribing of the Volcano bonds.

Bukele also predicts that Bitcoin will become a major election concern in the US election this year, and told his Twitter followers to look forward to a "huge surprise" at the Bitcoin 2022 conference.

Technical Market Outlook

The BTC/USD pair has bounced after a successful test of the trend line support around the level of $45,843, nevertheless, the volatility is still low as the market keeps trading inside a narrow range. The key short-term technical resistance is located at the level of $51,913 (Pin Bar high) and $53,333. Despite the recent complex and time consuming corrective decline in form of ABCxABCxABC pattern, the larger time frame trend remains up and only a clear and sustained breakout below the wave C low at $41,678 would change the outlook to bearish again.

Weekly Pivot Points:

WR3 - $56,509

WR2 - $54,179

WR1 - $49,960

Weekly Pivot - $47,650

WS1 - $43,745

WS2 - $41,329

WS3 - $36,987

Trading Outlook:

The ABCxABCxABC complex corrective cycle might be terminated at the level of $41,678 and the market is ready to continue the up trend, however the timing is not great at all as the volatility is low at the beginning of the 2022. According to the long-term charts the bulls are still in control of the Bitcoin market and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $39,474 is clearly broken on the daily time frame chart (daily candle close below $39,000 would be considered as a long-term trend change due to the lower low placement).