Bitcoin Technical Analysis: BTC Could Hit the Death Cross Later This Week, Suggesting More Pain Ahead 

Daily Bitcoin BTC Price Analysis

By
Last Updated January 13th 2022
7 Min Read
  • The Bitcoin price rose by 2.49% on Tuesday, moving to $42,773. 
  • The current session sees BTC marginally down, as markets remain jittery thanks to the latest bearish trend. 

The Bitcoin price has registered a marginal drop during the current session, as it slipped below $42,700, with market watchers keenly watching BTC’s trajectory. The Bitcoin price was fairly positive over the weekend, rising by 0.39% and then by 0.93%, ending the weekend at $42,158. However, Monday saw BTC back in the red, as the price dropped by 1%, falling to $41,735, but recovered on Tuesday, rising by 2.49% and settling at $42,773, before registering a marginal recovery. 

Bitcoin Price Chart Indicates Buyers And Sellers Looking To Establish Control 

The Bitcoin price was extremely bearish all through the previous week and had started Monday with a drop of 1.28%, falling to $46,711. BTC continued to drop on Tuesday, falling by nearly 2% and settling at $45,871, before falling by nearly 5% on Wednesday and dropping to $43,672. BTC remained in the red on Thursday, falling by 1.12%, before another significant drop of 3.66% on Friday took the price down to $41,603.

Image: BTC/USD daily

BTC/USD daily chart 011322

The Bitcoin price was able to reverse the bearish trend over the weekend, as the price rose by 0.39% on Saturday. BTC then pushed up by 0.93% on Sunday to end the weekend on a positive note at $42,158. However, the price fell back in the red on Monday, dropping to $41,735, before making a significant increase on Tuesday, rising by 2.49% and settling at $42,773. BTC has reversed the marginal drop and is currently up by almost $0.50%, looking set to push to $49,000.

We can see that the MACD is currently bearish, but if the price continues to increase, we could see it flip to bullish.

Looking at IntoTheBlock’s IOMAP for the Bitcoin price, we can see that BTC faces strong resistance at around $48,533. At this price level, over 2.4 million addresses have sold more than 1.2 million BTC.

Image: IntoTheBlock 

BTC/USD volume chart 011322

The 4-hour Bitcoin price chart shows us that BTC had pushed up to $42,028 on the 8th. The price fell back from this level, dropping to $40,915 before pushing up to $41,914. BTC could not push past the 20-bar SMA but was able to stay at this level, pushing above the 20-bar SMA on the 9th and moving to $42,792. However, BTC could not stay at this level and fell back, dropping to $41,936, and then slipped below the 20-bar SMA on the 10th, falling to $40,993. BTC was able to make a strong recovery from this level, pushing back above the 20-bar SMA and moving to $42,296 before dropping to $41,777, where the 20-bar SMA acted as support. As a result, BTC rallied from this level, pushing to $43,062, where the 50-bar SMA acted as resistance and then dropped to its current level of $42,805.

We can see that the MACD and Parabolic SAR are both bullish, indicating that the price could push higher.

Image: BTC/USD 4-hour

BTC/USD 4-hour chart 011322

4,118 BTC Bought Since November By Mega Whale Who Holds 123,000 Bitcoins

According to data shared by Twitter user @Diditaihuttu, an ultra-large Bitcoin whale who owns over 122,000 BTC has been buying more Bitcoin throughout 2021 and accelerated the purchasing in November of last year.

Since then, the whale has purchased more than a whopping 4,000 Bitcoins, adding them to their crypto riches. The whale address 1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ, as per BitinforCharts, holds a total balance of over 122,972 Bitcoins, which amounts to over $5,179,111,100 in fiat.

Over the past few months, since November, this whale has been buying Bitcoin stashes sized from 120 to almost 500 BTC. According to @Diditaihuttu, who shared a screenshot of the whale's purchases, the mega Bitcoin holder made only one sale of 1,500 BTC. Aside from that, the whale has only been grabbing more of the flagship cryptocurrency.

Per earlier reports, three Bitcoin whales grabbed Bitcoin on the dip last week, buying more than 5,000 coins. They purchased 1,455; 3,000 and 867 BTC. 

Back on January 7, that amount of Bitcoin constituted a whopping $225,204,067. Another major wallet, though, sold 4,250 Bitcoin. Chinese crypto-journalist Colin Wu Wu pointed out that those three wallets were not marked as belonging to any crypto exchanges.

Kazakh Crypto Miners Remain Hopeful, Assess Satellite Option Amid Unrest

Crypto miners in Kazakhstan remain hopeful about their local businesses as most of their facilities have not been reported to be damaged during the mayhem that erupted in the country last week, but unpredictable internet connectivity continues adding to the uncertainties.

 

According to a Forkast report, Alan Dorjiyev, president of the National Association of Blockchain and Data Centers Industry of Kazakhstan, said:

“Miners are still assessing the situation, as no damage has been done to mining facilities.”

Dorjiyev said internet connection was available in most regions, but it was still very limited in the Almaty region, where riots took place mainly in the southern part. While the internet remains an issue for miners, some are considering going for satellite internet services. 

Dorjiyev said:

“Fiber connection is definitely very affordable. However, satellite can be a reserve option.”

Last year, Kazakhstan became a popular destination for relocation after China’s crypto bans. However, recent internet blackouts have left miners struggling to operate, creating a less-than-ideal environment for businesses.

Didar Bekbauov, a co-founder of Xive, which operates crypto mining farms in Kazakhstan, tweeted recently that it has restarted about half of its mining operations in the country and its team is already looking for satellite network service backups.

Morocco Is Number One For Bitcoin Trading In North Africa

Recent Triple A data has indicated that 0.9 million people (roughly 2.4% of Morocco’s total population) own cryptocurrency currently. That puts the kingdom as the top country in North Africa and the top 50 holders of cryptocurrency population percentage, just ahead of Portugal.

Data from Useful Tulips, a platform that tracks peer-to-peer BTC trading across the globe, confirmed the trend. The Kingdom of the West, as known locally, has been the runaway North African leader for BTC trades in the past year.

Unfortunately for crypto enthusiasts, there has been no change in crypto laws in recent years. According to Morocco’s Foreign Exchange Office, it will not support a “hidden payment system that is not backed by any financial institution.” 

While the law came into being in 2017, the ban has not reduced adoption, and as the data shows, Moroccan crypto enthusiasts continue to circumvent the ruling. Nearby, the Egyptian pound is gaining on the Moroccan Dirham for BTC trades. On the 30 day period, UsefulTulips showed that Egypt is $20,000 short of catching Morocco. It remains illegal to trade BTC and crypto in Egypt.

To bolster Morocco’s orange-tinted future, Harmattan Energy is set to build wind farms. The purpose of the 900MW behemoth wind site set in Dakhla, the Sahara region, is to “power blockchain computing.” As Bitcoin mining and trading is currently outlawed the group cannot openly purport Bitcoin mining.

Whale Transactions Are Dropping On Bitcoin Network, But Here Is A Positive Sign

According to Santiment, Bitcoin whale transactions are currently fewer than those seen in October or November. The firm noted that the Bitcoin network is currently getting around 13K transactions per day that exceed $100K in value, which is low compared to the number seen in October and November.  

"Major whale transactions aren't quite coming at the frequency they were in October or November. Our metrics indicate that the $BTC network is getting around 13k transactions per day that exceed $100k in value. $ETH's network is seeing about 9k per day."

 Notably, Bitcoin hit all-time highs of $69,000 on November 10 as investors cheered the debut of the first Bitcoin futures ETF. While the reason for the drop in whale transactions remains as yet unknown, the lackluster Bitcoin price action may have likewise contributed. 

This is because, to avoid price slippage, traders who typically perform large-volume transactions may prefer to split their orders into smaller quantities over a longer period. Market prices can vary quickly during periods of heightened volatility, causing slippage to occur during the time between when a trade is ordered and when it is executed.

This may result in smaller-sized transactions but not necessarily a decrease in overall transaction volume.

Bitcoin Price Is Expected To Reach These Levels

Looking at the Bitcoin price chart, we can see that BTC has registered a marginal drop during the current session, as buyers and sellers look to establish control. If sellers take control, we could see BTC drop to $42,500 or below, but if buyers establish control, BTC could push above $43,000.