Bitcoin price analysis: BTC below $37K, has the bottom arrived?

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Bitcoin price analysis for Jan 22, 2022, is unfortunately not what we expected. The world’s biggest cryptocurrency broke below the expected price support of $41K. After multiple days of spending between $41K-$43K, as reported by TheCoinRise, BTC has given in to the selling pressure. 

The data from CoinMarketCap shows that the trading volume of the token rose by 22.70% in the last 24-hours with the market cap falling by 6.13%, standing at $689 million. The sell-off removed $1 trillion from the market. 

Earlier this week, TheCoinRise predicted that BTC would revisit $40,000. The daily candle for Jan 22 opened at $36.6K and reached a daily high of $36.8K. At the time of writing, the price of Bitcoin is $36.2K. 

Bitcoin price analysis on the daily chart

Bitcoin price analysis for Jan 22, 2022 projects a retracement towards the support of $34.5K. It is possible that this price might be at the bottom. 

On the other hand, the chart below shows that the price action broke down from the lower end of the Bollinger Bands as selling pressure surged. Furthermore, the 50-day and 100-day Moving Averages are progressing above the price action, which further confirms our bearish analysis.

Bitcoin price analysis

Source: TradingView

The MACD indicator confirmed a bearish divergence on the daily chart which means that the MACD line (blue) was broken below the signal line (orange) as the histogram turned red.

Bitcoin price analysis

Source: TradingView

Conclusion

Bitcoin adoption has been quite prevalent across countries as Rio de Janeiro announced to allocate the city’s 1% funds into Bitcoin (BTC). On the other hand, El Salvador has also continued to buy Bitcoin. In all, Bitcoin price analysis is bearish for today but, selling at lower prices is not the solution. 

As billionaire Ray Dalio, the famous hedge fund manager, stated, investors should have 1-2% of their funds in Bitcoin

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