Traders say “stay calm” but also expect further whipsaws in BTC price until $46,500 flips to support and marks a higher time frame trend reversal.
Market volatility reared its ugly head once again for crypto traders on Jan. 13 as the excitement of Bitcoin (BTC) hitting its highest level in a week was quickly thwarted by a correction that thrust the cryptocurrency back into the mid-$45,000 range.
Data from Cointelegraph Markets Pro and TradingView shows that after reaching an intraday high of $44,500, bears took control of the Bitcoin market and hammered the price to a low of $42,315 while the wider global financial markets also experienced a noticeable sell-off.
BTC/USDT 1-day chart. Source: TradingView
Here is what several analysts in the cryptocurrency community are saying about Jan. 13’s price action and what levels traders should keep an eye on.
50-day EMA becomes the new resistance
Analysis of Bitcoin’s weekly price movement was provided by crypto analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart focused on BTC’s performance around the 50-day exponential moving average (EMA).
BTC/USD 1-week chart. Source: Twitter
Rekt Capital said,
“Though BTC didn’t reject from it in a picture-perfect manner… The blue 50-week EMA could be reasoned to figure as resistance at this time.”
Based on the chart provided, Bitcoin now faces stiff resistance at $44,825.
Whales exert pressure at $46,500
When it comes to where Bitcoin whales have been making a splash, on-chain analysis firm Whalemap posted the following chart detailing heavy accumulation at the current price level, as well as the previous accumulation of 90,000 BTC around the $46,500 price level.
Large Bitcoin wallet inflows. Source: Twitter
“Reclaim of $46,500 will look like a trend reversal. Whales will be providing a bit of resistance there though. All eyes on $46,500.”
“Stay calm and enjoy the markets”
This area of resistance was also highlighted by independent market analyst Michaël van de Poppe, who posted the following chart showing a rough estimate of what the BTC price action might look like for the month of January.
BTC/USDT 4-hour chart. Source: Twitter
van de Poppe said,
“This might be a very realistic scenario for Bitcoin. First test of $46K, I doubt we’ll break through in one go.”
Following the breakout attempt and the rejection at $44,000, Poppe posted the following tweet calling for patience as the route higher will take time to unfold.
Relax, stay calm and enjoy the markets.
Last days sentiment slowly started to switch.
Long term still bullish, but in order to have a big bullish move, #Bitcoin and the price action need to settle and accumulate.
That’s this period.
— Michaël van de Poppe (@CryptoMichNL) January 13, 2022
The overall cryptocurrency market cap now stands at $2.023 trillion and Bitcoin’s dominance rate is 39.8%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.