Bitcoin Price Analysis For January 5, 2020

Investors and traders in leading digital asset, Bitcoin, would be overjoyed in the recent bullish run of the digital asset after leaving the uncharted territory of $20,000 to move way past the $30,000. Three days after the new year, Bitcoin already touched the $34,000 price mark, with the digital asset preparing for more upward surges.

But while traders and investors were expecting the digital asset to breach above the $35,000 price mark the way it did the other resistance figures, the digital asset encountered a slight rejection to trade under the region.

With the digital asset pulling back due to the resistance, experts have warned that it could continue to move in a downward trajectory. Bitcoin has always followed that phenomenon of making a bearish move after failing to breach resistance levels.

Bitcoin bulls are still trying to defend the price

As if on impulse, Bitcoin crashed about 12% to trade around the $28,000 price mark after encountering the resistance. According to analysts, the pullback was healthy and necessary, but the digital asset level was quite unseen. Presently, the next resistance level of the digital asset are $33,000, $34,000 and $35,000 while the new support level is now around $20,000, $21,000 and $22,000.

Bearing in mind that the digital asset faced rejection at the said level, Bitcoin made a bearish run to trade at $32,268 from its initial price of close to $35,000. After the resistance problem, the bulls could not help Bitcoin resume the bullish momentum as it moved further down to about the $28,000 price level.

However, the coin experienced a minor pullback, but it still failed to sustain that momentum as it still traded in a bearish direction. If this trend continues, Bitcoin will move to $30,000, and if the bulls fail to sustain it, it could still fall below that level to stay at $22,000.

Analysts say Bitcoin bull run might soon be over

If the bulls help Bitcoin, it could resume its previous bullish run to trade above the $30,000 price mark. Bitcoin would be looking to reach as high as $40,000 if the momentum is sustained, but analysts have conceded that it could encounter a very strong resistance around the $37,000 price mark.

Presently, Bitcoin is still trading around the $30,000 price mark with no clear cut direction on where the digital asset will trade. January 4 saw a rather disappointing trade in the Bitcoin market as the leading digital asset traded around $27,700 but quickly recovered part of the lost value.

According to details gathered from Glassnode, an on-chain data analysis platform, traders who held long positions on Bitcoin futures on Binance lost about $190 million.

However, analysts have warned traders in the crypto market to trade with caution because this current bull run would soon be over, and Bitcoin might resume its usual trend. The latest 4-hour price action of Bitcoin shows that the bulls are actively involved in trying to help the digital asset move above the $30,000.

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