Bitcoin Technical Review - Beginning of January 2021

By xuanling11 | Crypto Learning | 3 Jan 2021

Bitcoin is breaking higher and higher. Let's take a look at how it will move.

Technical Analysis:

635d41887ec155be5984b071720d1efc7a16f55893c657c48a58938a22a7268a.png

If you see the graph above, it was overbought around $33K and it went down around $30K then continue raising up.

I foresee the Bitcoin is continue overbought with correction of 10$ up and down.

The support level is around $29K to $31K shown in purple rectangular.

Fundamental Analysis:

2c2785693ad36702adb9ff7ea17ef1dd75921827ee98ce81785c173058b55c4a.png

From my previous article about valuation calculation from Metcalfe's Law, Bitcoin valuation is stable.

Numbers of Users and Average Transaction Value are increasing but at stable rate.

99b9b7e7ed830a632c8ed8408ee5189a10044fc443d596dd6cf261f9b49735bb.png

804a9a36f026577a4376c8830c9682e33ab7188b387141cfe7f02d124ec9fa86.png

Average Transaction Value is slightly increase to 223K.

Bitcoin Value = $29,456 ~ $35,987

It seems average transaction value is increasing and there are not sudden sell off in previous event.

Bitcoin is still going strong, but I will be caution at this level.

Thanks for reading my posts!

Disclosure: I/we have no positions in any cryptocurrencies mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose cryptocurrencies are mentioned in this article. These information are only for educational purposes.

Resources