Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Bitcoin Price Forecast: Will Retail Traders Pile into Bitcoin Next?

Bitcoin Price Forecast: Will Retail Traders Pile into Bitcoin Next?

Peter Hanks, Strategist

Bitcoin (BTC/USD) Price Outlook:

Bitcoin Price Forecast: Will Retail Traders Pile into Bitcoin Next?

The longtime speculative favorite of capital markets, Bitcoin, has taken a backseat to single stock names over the last few sessions as companies like GameStop, AMC, BlackBerry and American Airlines soar - until recently - on the back of targeted retail interest. Outside of the limelight, Bitcoin has continued its retreat from the record levels it established earlier this month.


As some of the favorite names targeted by retail traders face trading restrictions, the crowd may return to Bitcoin as a speculative alternative. While renewed interest in BTC/USD could boost price somewhat, retail traders have a limited role in the cryptocurrency and, as such, a break above the recent downtrend will be required before a serious continuation might unfold. Further still, there is little to suggest Bitcoin will be the vehicle chosen as other markets, like silver, enjoy a bid from potential retail speculation.

Bitcoin (BTC/USD) Price Chart: Hourly Time Frame (December 2020 – January 2021)

bitcoin price chart forecast

To that end, Bitcoin traders should still look to the technical landscape for insight. Apparent support from the $30,000 to $28,000 area has helped buoy price since early January and should be viewed as an important landmark for bulls. Should price break beneath the zone, BTC could accelerate downward as support is relatively sparse until the Fibonacci level around $24,230.

Forex for Beginners
Forex for Beginners
Recommended by Peter Hanks
Forex for Beginners
Get My Guide

On the other hand, a plethora of resistance resides overhead following the digital currency’s recent retracement. Initial resistance might be found near the $34,800 mark which coincides with the January 3 swing-high and the January 25 peak. A potential confluence of resistance lies slightly northward, just shy of $36,000 where an ascending trendline from early January and a descending trendline from the record high intersect. A break above this area would constitute a significant bullish development and could open the door to a continuation higher.

With that in mind, the series of lower-highs established throughout January will have to be disrupted if Bitcoin is to enjoy a meaningful recovery. Short of an advance above $36,000, a gradual bleed lower for Bitcoin in the near term seems likely.

How to Short Sell a Stock When Trading Falling Markets

Either way, the longstanding technical barriers above and below the current trading price offer locations for potential areas of interest or levels of invalidation depending on your directional bias. In the meantime, keep up to date on recent price developments and analysis using Twitter by following @PeterHanksFX.

--Written by Peter Hanks, Strategist for

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.