Bitcoin prediction this week January 13 – 19. Coin likely to rally to $8,500 soon
The graphs show signs of a breakout of the downtrend line.
The CME Group will launch Bitcoin options trading on January 13. Analysts at JPMorgan Chase have noted an increase in institutional interest before the launch. They found a spike in Bitcoin futures open interest and an increase in the number of investors who hold large open interest. Though this suggests “high anticipation among market participants,” previous such launches have a mixed track record. Therefore, we cannot be certain of a rally in Bitcoin.
However, halving is an event that has historically produced a sharp rally in Bitcoin’s price. Analysts at Fundstrat Global Advisors believe that the upcoming halving in May of this year will also produce a rally as it has not yet been priced in. They anticipate Bitcoin to rally more than 100 per cent in 2020. Let’s do the Bitcoin price prediction for this week and see if we spot signs of a change in trend.
Bitcoin price prediction chart: weekly
The $6,408.10 to $7,853.95 range resolved to the upside. This is a positive sign as it suggests that bulls have overpowered the bears. Currently, the bears are attempting to defend the downtrend line.
If successful, the Bitcoin to USD pair might again dip to $7,853.95. A break below this support will drag the price back into the range. The flattish moving averages and the RSI close to the midpoint suggests a balance between bulls and bears.
However, if the bulls can push the price above the downtrend line, it will indicate a change in trend. The first target is a move to $10,550 and above it $12,000. The Bitcoin analysis of the weekly chart indicates that the pair is on the verge of confirming a bottom. Let’s do the bitcoin price analysis of the daily chart to see if we find a similar pattern on it as well.
BTC to USD chart: daily
Bitcoin broke out of the overhead resistance at $7,852.85 on January 7, which triggered our buy recommendation suggested in the previous analysis. The price turned down from the downtrend line on January 8 but the bulls bought the dip to the 20-day EMA. This is a positive sign as it shows that the sentiment is to buy the dips rather than sell the rallies.
The moving averages have completed a bullish crossover and the RSI is in the positive territory. This suggests that the bulls have the upper hand. The price has been consolidating near the downtrend line for the past three days. This increases the possibility of a breakout to the upside. A break above $8,500 can quickly result in a rally to $9,600.
Contrary to our assumption, if the price again turns down from the downtrend line, it might find support at the 20-day EMA. However, if the bears sink the price below the moving averages, a drop to $6,408.10 will be on the cards. Though the indications are positive, what is the bitcoin price prediction for this week and how can traders position themselves?
Bitcoin price this week January 13 to 19: How to trade it
We anticipate a breakout of the downtrend line and $8,500 this week. After a sharp up move, we anticipate the price to retest the breakout levels. The traders can hold their long positions with the stops at $6,800. We shall suggest trailing the stops higher after the price sustains above $8,500.
FURTHER READING: Bitcoin futures surge past $20bn
FURTHER READING: Bitcoin halving: could it reach $170K per coin?