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Bitcoin rebound faces important resistance

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Bitcoin Rebounds +12% | Why it’s important to focus long-term

Bitcoin rebound faces important resistance

Bitcoin rebound faces important resistance
CONTENT

  • Bitcoin formed the second consecutive weekly bearish candle

  • Resistance is located at $ 33,800 and $ 35,400

  • Daily technical indicators are giving bearish signals

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At the end of the week from January 18 to January 25, bitcoin (BTC) resumed its decline, which began from the all-time high of $ 42,000, reached on January 8.

The long term trend is likely to remain bullish, with Bitcoin (BTC) trading under short / medium term resistance right now. Only a bullish breakout of these levels will allow the cryptocurrency to resume growth.

Bitcoin rebound faces important resistance

Bitcoin rebounded after decline

At the end of the week from January 18 to January 25, Bitcoin (BTC) issued a significant drawdown, rolling back to a minimum of $ 28,850. As a result, the price formed the second bearish candlestick on the weekly chart.

However, at the same time, the BTC rate managed to break above the support of the Fibo level of 0.382 at $ 29,670. At the time of writing, the price was trading above $ 33,000.

Weekly technical indicators remain bullish.

Will Bitcoin be able to resume growth? Share your opinion in the comments and join the discussion in our Telegram channel!

Schedule MTC. Source: TradingView

On the daily chart, you can see that the $ 29,000 support area coincides with the Fibo 0.5 retracement of the recent bullish move. This increases the importance of this support. The BTC rate bounced off this level twice, both times forming long lower wicks.

Despite the rebound, it is still too early to talk about a bullish trend reversal.

The pair is still trading below $ 33,800 (0.382 Fib level of the last decline retracement and strong horizontal resistance). This area is marked in red on the chart. Even if BTC recovers above this level, the next strong resistance will meet it at $ 35,375 (Fibo 0.5 retracement of the same move and a potential downward resistance line).

Bitcoin rebound faces important resistance

Thus, until the BTC rate makes a pure breakout of this level, we cannot consider the current trend to be bullish. In case the price falls below $ 29,000, the next support will meet the pair at $ 26,000 (Fibo 0.618 correction).

Schedule MTC. Source: TradingView

Indicators confirm resistance

Technical indicators on the daily chart are giving clear bearish signals.

MACD has entered the red zone, the RSI is holding below 50, and the Stochastic Oscillator has formed a bearish crossover.

This supports our view that the trend cannot be regarded as bullish until the price recovers above the $ 33,800 area and possibly makes a bullish breakout of the downtrend line..

Schedule MTC. Source: TradingView

On the 2-week chart, technical indicators are neutral, but there is strong resistance.

Accordingly, until the BTC rate recovers above this area, we will not be able to talk about a bullish trend..

Bitcoin rebound faces important resistance

MTC schedule. Source: TradingView

Conclusion

As such, Bitcoin is likely still in line with a long-term uptrend and is showing signs of a bullish reversal. However, the short / medium-term trend for BTC cannot be considered bullish until the price makes a clean breakout of the $ 33,800 and $ 35,400 resistance areas..

You can read the previous Bitcoin forecast here.

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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