Bitcoin Consolidates, Lacks Buyers at Higher Levels– January 16, 2022
Since January 7 and 8 price slump, BTC/USD has resumed a range-bound move as it lacks buyers at higher levels. BTC prices are fluctuating between $40,850 and $44,000 price levels. After two failed attempts to break the $44,000 resistance, the crypto is consolidating above the $42,000 support in the middle of the price range. Bitcoin is trading at $42,998 as of press time.
Resistance Levels: $70,000, $75,000, $80,000 Support Levels: $50,000, $45,000, $40,000
Following the resumption of a fresh downward correction, the bears have been selling on each rally. On January 13, BTC price rallied to $44,069 but the crypto faced an immediate rejection. The market declined sharply to the low of $41,845 but resumed upward. Nonetheless, the price movement is dominated by the presence of small body candlestick. This has compelled the BTC price to consolidate below and above the 21-day line moving average.
These small body candlesticks are called Doji and Spinning tops. The candlesticks describe that buyers and sellers are undecided about the direction of the market. Meanwhile, the crypto is consolidating below the $44,000 resistance zone. If price rebounds above the current support, the recent high will be breached. BTC price will rally $47,000 price level. Further upside momentum may ensue.
Brazilian to Invest 1% Of City Reserves in Bitcoin
Eduardo Paes is the mayor of Brazilian city Rio de Janeiro and he intends to allocate 1% of the city’s treasury into Bitcoin. Because of that Paes plans for “Crypto Rio,” or turning the city into a cryptocurrency hub during Rio Innovation Week on Thursday. Paes also indicated that the state is also planning to introduce tax exemptions for the industry. The city finance secretary Pedro Paulo is contemplating a 10% discount on property tax in Brazil on payments with Bitcoin.
Nevertheless, Bitcoin’s price movement is slightly above the $42,000 as it lacks buyers at higher levels. The price movement has been insignificant because of the presence of indecisive candlesticks. The cryptocurrency is likely to be in a range-bound move for a few more days. BTC/USD risks further decline.
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