Bitcoin (BTC) Price Prediction: BTC/USD Fails to Reclaim the $34,500 Support; a Retest of the $30,000 Support Is Likely

Bitcoin (BTC) Price Prediction – January 31, 2021
BTC/USD is still range bound between $30,000 and $34,000. A resistance line has been drawn between the peak price of $41969 and $31,987. The downtrend line also shows the resistance levels of price. The bulls have to break the resistance line and the momentum is sustained to begin afresh upside momentum.

Resistance Levels: $45,000, $46,000, $47,000
Support Levels: $35,000, $34,000, $33,000

BTC/USD – Daily Chart

On January 29, BTC/USD rebounded above the $31,987 support as price breaks out at the resistance line and above the $34,000 high. The breakout was powerful as it reached a high of $38,710.70. Unfortunately, the price spike could not be sustained as the bears pushed the price to the previous range-bound zone. BTC price has fallen and it is fluctuating between $30,000 and $34,000. The long tail that was earlier displayed by the candlestick indicates that there is strong selling pressure at a higher price level. The bulls could not break the $38,000 resistance because the breakout level of $34,000 could not provide support for further upward momentum of the coin. On the upside, if bulls reclaim the $34,500 support, the upside momentum will resume. Conversely, if the bulls lost the $34,500 price level, the downtrend will resume. The support at $30,000 is likely to be retested.

Crypto Investor Could Lose All Their Money, by Irish Central Bank Governor
Gabriel Makhlouf is the governor of the Central Bank of Ireland and a governing council member of the European Central Bank. He warned the public about the risks of crypto investment on Bloomberg TV. He referred to the United Kingdom’s Financial Conduct Authority on Jan. 11:  “As the U.K. authority said a few weeks ago […] if people want to invest in Bitcoin they’ve got to be prepared to lose all their money. That’s certainly my view.“He said he is worried about consumer protection and that the central banker is confident that Bitcoin is no threat to financial stability. “Personally, I’m not sure why people invest in those sorts of assets, but they see them as assets clearly, and they see them as investments. Our role is to make sure that consumers are protected. I see that as the main role, I don’t see financial stability issues at the moment arising from Bitcoin itself. I worry more about consumers making the right choices.”

BTC/USD – 4 Hour Chart

Nevertheless, Bitcoin’s upward move is doubtful as it lost the $34,500 support level. The Fibonacci tool has indicated a further downward move of the coin. On January 30 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement level suggests that BTC price will fall to level 1.272 Fibonacci extension or the low of $31,119.70. At that price level, BTC price will reverse and resume upward.

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