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Bitcoin price consolidates over $ 35,000 support

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🔋 Morning Bitcoin update 14th Jan 2021 – Trend Neutral $35,000 & $33,000 support, $38,000 resistance

Bitcoin price consolidates over $ 35,000 support

Bitcoin price consolidates over $ 35,000 support
CONTENT

  • BTC formed a bearish reversal candle on weekly close

  • Weekly indicators remain bullish, but daily indicators give bearish signals

  • Bitcoin trades within a symmetrical triangle

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At the end of last week, Bitcoin sank significantly and formed a bearish candle. However, it is still consolidating above short / medium-term support, not recognizing the bearish trend reversal.

“The Hanged Man” on the chart

At the end of the week from January 11 to January 18, the bitcoin rate (BTC) formed a “hanging man” candlestick pattern on the chart, which is traditionally considered a sign of a bearish reversal when it appears against the background of an uptrend.

However, technical indicators do not yet confirm the trend reversal..

Bitcoin price consolidates over $ 35,000 support

MACD, RSI and Stochastic Oscillator are rising, and none of them are giving signals of bearish divergence, despite being in the overbought zone.

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MTC schedule. Source: TradingView

On the daily chart, the situation looks more pessimistic compared to the weekly timeframe. Although the BTC rate bounced off the 0.382 Fibo support at $ 32,125, and the chart shows hidden bullish divergence signals in the RSI, the rest of the indicators are bearish.

BTC has already marked a falling high, and the Stochastic Oscillator has formed a bearish crossover. In addition, the MACD indicator is declining and almost entered the red zone.

If the bitcoin rate breaks through the current support area, the next support will meet it at $ 29,080 (Fibo 0.5 correction).

MTC schedule. Source: TradingView

Bitcoin price formed a symmetrical triangle

On the 6-hour chart, the BTC rate has been moving along the upward support line since December 14. It may also be trading within a symmetrical triangle. Typically, this pattern is a reflection of the market’s neutral sentiment..

Technical indicators also look neutral and cannot confirm the direction of the trend.

MTC schedule. Source: TradingView

On the 2-hour chart, the BTC rate bounced off the 0.618 Fib level of the correction of the previous bullish move. Now the price is heading north, forming a rising low. The MACD indicator on this timeframe supports continued growth.

Bitcoin price consolidates over $ 35,000 support

Bitcoin may face resistance around $ 37,700. Here are the 0.618 Fibo retracement level, horizontal resistance and probably the descending resistance line of the triangle.

The further direction of the trend may depend on the direction in which the market breaks out of this triangle – north or south. A bearish breakout option seems more likely to us, since earlier the results of the wave analysis already gave us reason to believe that the pair could reach the top and start a long-term correction.

MTC schedule. Source: TradingView

Conclusion

Thus, bitcoin is expected to rise to $ 37,700 to touch the triangle’s resistance line. However, the trend remains uncertain until the price makes a bullish or bearish breakout..

You can read the previous Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinions expressed in this forecast do not reflect the opinions of the editorial staff of BeInCrypto.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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