Bitcoin prediction this week January 6–12: this could be the last opportunity to buy it below $8,000
We look at the charts and analyse Bitcoin price this week
Bitcoin had started the year on a weak note as the price dipped in the first two trading days of the year. However, on January 3, General Qasem Soleimani who headed Iran's elite Quds Force was killed in an airstrike by the US forces. This escalated tensions between the US and Iran, resulting in a risk-off sentiment across asset classes.
Bitcoin, which is considered digital gold, surged along with crude oil and gold. The uncorrelated nature of Bitcoin makes it an ideal hedge for the investor’s portfolio.
Head of Bitcoin lending platform Nexo, Antoni Trenchev expects Bitcoin to reach $50,000 in this year. He anticipates the halving of Bitcoin mining rewards to boost prices. Let’s look at the charts to do the Bitcoin price prediction for this week.
Bitcoin price prediction chart: weekly
Bitcoin has been range-bound between $6,408.10 and $7,853.95 for the past six weeks. This shows that both the bulls and the bears are playing it safe and are avoiding any large bets. However, this period of consolidation is unlikely to continue for long.
The long wicks on the candlesticks of the past three weeks show that lower levels are attracting buying by the bulls. Therefore, this week, we anticipate the bulls to make an attempt to break above the resistance of the range.
The 20-week EMA is placed just above the range at $8,080. If the bulls can scale and close above the moving averages, we anticipate a new uptrend to start. Though there are numerous resistance levels in between, we expect the BTC to USD price to reach $12,000 in the medium-term.
While the medium-term objective is strong, let’s do the bitcoin price analysis of the daily chart and attempt to forecast the Bitcoin price action this week.
BTC to USD chart: daily
The bulls again scaled above the 20-day EMA on January 6, which is a positive sign. Both moving averages have flattened out and the RSI has risen above 50 levels, which suggests that the selling pressure has weakened.
The bulls will now attempt to carry the price to the overhead resistance at $7,853.95. We anticipate the bears to attempt to stall the relief rally at this level. However, if the bulls can overpower the bears and push the price above $7,853.85, it will signal the likely start of a new uptrend. Though the resistance line of the wedge pattern might act as a barrier, we expect it to be crossed.
Contrary to our assumption, if the bulls fail to propel the price above $7,853.95, the BTC to USD pair might remain range-bound for a few more days. The pair will turn negative if the bears sink the price below the recent low of $6,408.10. However, we give this a low probability of occurring. While the chart structure is showing encouraging signs, what is the bitcoin price prediction for this week?
Bitcoin price this week January 6-12: how to trade it
As the sentiment is improving, traders can buy on a breakout and close (UTC time) above $7,853.95. The initial stop loss can be kept at $6,800. If this support breaks, the price could retest the recent low of $6,408.10. If the bulls fail to push the price above $7,853.95, we suggest traders remain on the sidelines.
FURTHER READING: Trading Bitcoin for beginners
FURTHER READING: Bitcoin halving: could it reach $170K per coin?