Bitcoin and Stellar’s Lumen – Weekly Technical Analysis – January 11th, 2021

Steering clear of the first major support level at $27,594, Bitcoin surged to a Friday intraweek high and a new swing hi $41,969.0.

Bitcoin broke through the first major resistance level at $36,608 and the second major resistance level at $36,608 on the way to a new all-time high.

A bearish end to the week, however, saw Bitcoin fall back to end the week at sub-$39,000 levels. In spite of the pullback, however, Bitcoin avoided a fall back through the second major resistance level at $36,608.

4 days in the green that included an 8.17% rally on Wednesday and a 7.18% gain on Thursday delivered the upside.

For the week ahead

Bitcoin would need to move back through $36,236 pivot to support a run the first major resistance level at $43,933.

Support from the broader market would be needed for Bitcoin to break back through to $40,000 levels.

Barring an extended crypto rally, resistance at last week’s new swing hi $41,969 would likely cap any upside.

In the event of another breakout, Bitcoin could test resistance at $45,000 before any pullback. The second major resistance level sits at $49,665.

Failure to move back through the $36,236 pivot would bring 23.6% FIB of $33,008 and the first major support level at $30,504 into play.

Barring another extended sell-off, however, Bitcoin should steer clear of sub-$30,000 support levels. The second major support level sits at $22,807.

At the time of writing, Bitcoin was down by 8.79% to $34,844.0. A bearish start to the week saw Bitcoin slide from an early Monday morning high $38,277.0 to a low $33,642.0.

Bitcoin left the major support and resistance levels untested at the start of the week.