Bitcoin tried to break above $ 40,000, but failed



Bitcoin tried to break above $ 40,000, but failed

Bitcoin tried to break above $ 40,000, but failed

  • BTC is moving along short and medium-term upward support

  • Resistance is located at $ 39,463 and $ 37,143

  • BTC is trading within a short-term parallel upward channel

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Bitcoin hit a high of $ 40,112 on January 14, but rebounded immediately and has been declining ever since.

The long-term trend appears to be bearish, but the short-term trend will remain bullish as long as BTC trades above $ 36,717.

Hidden divergence caused the pump

Bitcoin tried to break above $ 40,000, but failed

Bitcoin (BTC) hit a low of $ 30,402 on January 11 and has since moved north, forming a long lower wick just above the 0.382 Fibo level of the recent bullish retracement.

As a result, the BTC rate managed to strengthen on January 14 to $ 40 112. After that, the pair began to decline.

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Technical indicators on the daily chart are giving bearish signals. The RSI showed strong signs of hidden bullish divergence, which, apparently, has already caused the price increase.

MACD is declining, and the Stochastic Oscillator has formed a bearish crossover. This indicates a bearish trend..

MTC schedule. Source: TradingView

What’s next

On the shorter-term 6-hour timeframe, Bitcoin bounced off the 0.786 Fib level, which previously played a support role. Accordingly, the $ 39,463 area is now confirmed as resistance.

Despite the price rebound, technical indicators remain bullish. In addition, there is an upward support line at $ 34,000. This suggests that the short-term trend is still bullish.

Bitcoin tried to break above $ 40,000, but failed

MTC schedule. Source: TradingView

On the 2-hour chart, the BTC rate is moving along another upward support line, which now passes directly below the support area of ​​$ 37,143 (Fib 0.382 retracement of the last bullish move).

Technical indicators appear to be relatively bullish and in general the short term trend will be considered bullish as long as trades are above this area / support line.

MTC schedule. Source: TradingView

Wave analysis

Judging by the results of the wave analysis, the BTC rate has probably completed the formation of the corrective structure A-B-C. Yesterday, the price bounced off the resistance line of the parallel upward channel.   

MTC schedule. Source: TradingView

Although the A-B-C retracement looks complete as wave C consists of five sub-waves (red in the chart below), there is still a possibility that wave 5 will expand..

Accordingly, the growth may continue until the BTC rate falls below the low of wave 4 at $ 36,717 (red line on the chart). In the process of such an increase, the price can reach a maximum of $ 42,603 ​​(based on the ratio of waves A: C as 1: 1.61).

Bitcoin tried to break above $ 40,000, but failed

MTC schedule. Source: TradingView


As such, Bitcoin is likely nearing the top of a corrective move, however, the short-term trend will be considered bullish as long as BTC is trading above $ 36,717..

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.


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