Bitcoin is struggling to gain bullish momentum to reach the $ 35,000 level

Mohammed Abdelkhalik
January 13, 2021

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Bitcoin Market Overview: January 13rd 2021

Bitcoin prices are currently trading at just over 20% below the all-time high they hit last week at around $ 42,000. Things seemed to be recovering on Tuesday, January 12th, but the “low rise” that was recorded indicates that prices will fall further and that The correction is not over yet.

During today’s trading, the leading digital currency was trading above $ 34,500, down by 5% in the past 24 hours. Yesterday, it only managed to reach the day’s high at $ 36,500 before selling resumed from yesterday’s lows at $ 32,000.

As Bitcoin price correction continues from record highs, analysts and industry executives are looking forward to the rest of the year, and some believe a six-figure figure is still possible.

According to technical analysis, the currency is forming its fifth red candle in a row, which has not occurred since June 2020, when prices fell from $ 10,200 to $ 8,800.

Bitcoin to USD Coinbase chart - 13rd January 2021

Bitcoin is overbought

On January 11, Bitcoin fell to $ 31,327, but it was promptly corrected to $ 36,656, however, the correction was short-lived, as the currency continued its downward movement as it faced rejection at $ 36,500, amid increasing prospects for a further decline, analysts see. Pull back naturally because it has been trading in the overbought zone for the past weeks.

On January 12, prices rebounded in a narrow range as the currency tried to re-enter the $ 37,000 level, but the increased selling pushed the price back towards the $ 32,000 barrier before recovering again today.

The currency’s downward price movement has panicked new investors who are not fully aware of the fluctuations of the digital currency, but the recent big decline of 28% does not place the currency on the list of its worst downturns in history. Everyday Bitcoin rebounds.

On the way to maturity

An analyst at Goldman Sachs says that Bitcoin has begun to delay its maturity as an asset class, and he believes that more support from institutional funds is needed in order to reach the level of stability in the market. And added that the recent rallies have attracted great interest from all types of investors, both private individuals. Or companies, however, institutional funds still represent a small portion of the market as a whole. The primary solution to having some kind of stability in the market is more participation by institutional investors and they are now a small number of approximately 1% of which is institutional money.

Despite the daily rapid recovery of Bitcoin by 20%, many analysts have expressed their concern that the digital currency is still moving in the bear market so far, due to the high rate of funding in the futures market and the increasing appreciation of the US dollar.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.