The Bitcoin (BTC) price movement in January started bullishly, but a quick, bearish turnaround began on January 11.
Despite this variation in trend, these four crypto traders successfully predicted the BTC price movement in January.
Bitcoin Price Reclaims Short-Term Range
The Bitcoin price has fallen since reaching a new yearly high of $49,000 on January 11. The downward movement caused a breakdown from an ascending parallel channel, which was validated as resistance on January 16.
Afterward, BTC broke down from the $41,000 horizontal area, which had provided support since December 2023. Despite the breakdown, the Bitcoin price regained its footing on January 23 and has increased since, reclaiming the support area the next day.
If the increase continues, the previous channel’s resistance trend line will be at $45,000, 6% above the current price.
On January 20, CredibleCrypto predicted a deviation below the previous range low, stating that the BTC price would bounce once it completes it.
IncomeSharks was bullish because of a breakout from a descending resistance trend line after the reclaim. He tweeted:
Taking a swing trade here. Nothing too crazy, just passing the time waiting for lower prices. Think we are due for a 4h downtrend break and think the super trends flip bullish for a bit. Keeping stops tight.
As outlined previously, the deviation and reclaim occurred as predicted.
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Elliott Wave Theory Predicts Bottom
These two crypto traders used Elliott Wave Theory to predict the bottom of the BTC price. Elliott Wave theory involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend.
XForceGlobal posted a chart where the BTC price completed the W wave of a W-X-Y correction and has begun a relief rally.
An almost identical chart is given by TheTradingHubb.
While the theory accurately predicted the BTC increase, it is uncertain if it will be followed until its conclusion.
If the count is correct, the BTC price will increase by roughly 5%, reaching the 0.5-0.618 Fib retracement resistance at $43,650-$44,900. This will be the B wave in an A-B-C corrective structure.
Read More: Who Owns the Most Bitcoin in 2024?
Afterward, at least a 12% decrease and possibly a 19% drop to the 0.5 or 0.618 Fib retracement support levels will be expected to occur.
Despite this bearish BTC price prediction, a decisive close above the 0.618 Fib retracement resistance at $44,900 will complete the correction. Then, Bitcoin can increase by 16% to its previous high of $49,000.
Read More: What is a Bitcoin ETF?
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