BTCUSD: For Bitcoin Prices, $40,000 Suddenly Seems Possible…

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Written By: Eno Eteng (MSTA)

Jan 07, 2021, 16:15 GMT 16:15

Bitcoin Cash

Summary:

Bitcoin prices set a new record in Thursday afternoon trading, as it hits the 39182.34 price mark at the time of writing.

Bitcoin prices (BTCUSD) have surged 5.62% on Thursday, taking the pair to a brand new all-time high of 39182.34 this afternoon and counting.

On-chain analysis from Glassnode shows that institutional orders requesting to purchase $1million worth of Bitcoin and more are on the increase, helping to drive up Bitcoin prices. According to a Coingape article, Bitcoin whales seem to be in a feeding frenzy and more whales are joining the party.

The report also said that the whale demand was being driven by Bitcoin whales from Asia and then America, in that order. Bitcoin prices have nearly doubled from their 2017 highs and look set to target the $40,000 mark with the latest moves.

Technical Levels to Watch

The initial pitstop for BTCUSD this Thursday as it pushes into new territory was 38988.48 (341.4% Fibonacci extension from the 13 March 2020 to 17 August 2020 price swing). This resistance is under threat, and Bitcoin prices could cross $40,000 for the first time ever if the surge continues. 40721.85 (361.8% Fibonacci extension) is expected to be the next target thereafter.

On the other hand, profit-taking retracement could see BTCUSD head towards 37781.92 initially, with 35470.75 and 32224.93 all serving as potential downside targets.

BTCUSD Daily Chart

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.