FX.co ★ Trading signals for BITCOIN on January 20 - 21, 2022

On the 4H chart, bitcoin is trading below the downtrend channel and below the 21 SMA with a bearish bias. BTC remains near the support level of 1/8 Murray and above the psychological level of 40,000.

Bitcoin price has been hovering around the barrier of 41,672 for almost two weeks and there are no signs of moving away.

There is a chance that BTC could drop towards 0/8 Murray around 37,500, before the start of an uptrend.

A breakout and consolidation above the 21 SMA located at 42,107 could be positive for bitcoin. It rally towards the 200 EMA located at 45,389.

The eagle indicator is trading above an uptrend channel, the moving average is likely to bounce above this channel and will give it the momentum it needs to return to the zone 46,875 (3/8).

Risk aversion persists ahead of the FOMC meeting next week. Investors are cautious ahead of the event. BTC volatility may decline while the dollar may remain under slight bearish pressure.

Bitcoin is likely to remain under bearish pressure for a long time if the Fed raises the interest rate. Bitcoin could suffer in the long term and we would expect a return to the level of $30,000.

Our trading plan for the next few hours is to buy only if BTC breaks down and consolidates above $42,000 with targets at 43,750 45,389 and up to 46,875. The eagle indicator supports our bullish strategy.

Support and Resistance Levels for January 20 - 21, 2022

Resistance (3) 44,994

Resistance (2) 43,308

Resistance (1) 42,465

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Support (1) 40,625

Support (2) 39,360

Support (3) 37,455

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Scenario

Timeframe H4

Recommendation: buy if it breaks

Entry Point 42,107

Take Profit 43,750 (2/8) and 45,389 (200 EMA)

Stop Loss 41,250

Murray Levels 37,500 (0/8) 40,625 (1/8) 43,750 (2/8)

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