Bitcoin (BTC) Fundamental and Technical Analysis

Today we will discuss the current state of Bitcoin, including fundamental and technical factors that could affect its price.

Fundamental Analysis:

The most significant event currently affecting the market is the Trump impeachment hearing, which is expected on January 10. The hearing is taking place just 10 days before his inauguration on January 20, which is creating uncertainty in the market.

Key Points:

1️⃣ Why did the market fall two days ago?

The main reason for the market decline is fear. Investors are waiting for the Trump impeachment verdict, and this uncertainty is causing people to sell their holdings.

2️⃣ What if the verdict goes against Trump?

If the verdict goes against Trump, he will not be able to be sworn in as president, and in this situation the market could crash, resulting in the price of BTC falling below $80,000.

3️⃣ Will Wall Street let the verdict go against Trump?

I don’t think so. Wall Street always influences big decisions and tries to sway the decision in its favor to avoid losses. Therefore, it is more likely that the decision will be in Trump’s favor.

Summary:

The more uncertain and fearful the market is, the higher the chances of a bounce.

The market is expected to improve in the next 3-4 days.

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Technical Analysis:

Looking at the 4-hour chart (4H TF) of BTC, it is clear that the price is continuously declining. However, according to the Fib Tool, the price has approached the golden zone, from where there are chances of a bounce.

Summary:

Buy at $94,800 and wait for the bounce. But if the price starts to move lower, place a stop loss to avoid losses.

Note:

This analysis is based on my personal opinion and is not financial advice. Be sure to do your own research before making any investments.