Bitcoin technical analysis: A bear is waiting at this triple resistance.

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In our pre­vi­ous video — A hap­py new year (2023) with this Bit­coin analy­sis from ForexLive.com — when BTC was at $16700, I called Bit­coin’s upcom­ing rise and now we are over 27% above that in less than 2 weeks, a stag­ger­ing rise.

Now BTC is danc­ing around $21,000 and I lay out a triple resis­tance area, close to $23k (see video for more specifics, and you are also wel­come to draw the lines and pat­terns shown on your chart).

Tech­ni­cal analy­sis of Bit­coin (BTC) might be com­pli­cat­ed, but there are var­i­ous signs and tools you can use to make bet­ter judg­ments. BTC/USD chart analy­sis shows the following:

  1. Trend analy­sis: Use mov­ing aver­ages and trend­lines to deter­mine mar­ket direction.

Believe it or not, Bit­coin is still trend­ing up on the month­ly time frame, as the pur­ple trend line with­in the analy­sis video above shows. How­ev­er, BTC has recent­ly crossed down and needs to recap­ture the trend line. The expec­ta­tion is that it will first back­test that line, as shown in the video.

  1. Sup­port and resis­tance lev­els: Find lev­els where the price has pre­vi­ous­ly found sup­port or resis­tance to detect prob­a­ble price reversals

    The pur­ple, long term trend line is a resis­tance and the video shows that there are 2 oth­ers in the $23k area. If BTCUSD clears $25k, it would have, nat­u­ral­ly, reclaimed the trend line men­tioned above and $25212, the high of August 2022, will be wait­ing to be tak­en for the bulls to open up to the next ral­ly. On the sup­port side, $20k ‘round num­ber’ should be pro­tect­ed. No 2 con­sec­u­tive dai­ly can­dles should close below it, oth­er­wise, bears regain control.

  1. Chart pat­terns: Watch the yel­low chan­nel shown in the video above, it should be crossed up to reach the ‘mag­net’ trip­ple resis­tance area of $23k. If price lat­er re-enters that chan­nel, it would be a bear­ish sign. From 5th of Nov till 16th of Jan 2023, we have got a poten­tial ‘cup’ of a ‘Cup and Han­dle’ pat­tern, which is worth keep­ing an eye on, should the han­dle lat­er be printed.

  1. Indi­ca­tors: RSI, MACD on the dai­ly time­frame are cur­rent­ly con­firm­ing the ongo­ing ral­ly. How­ev­er, this is delayed data and delayed indi­ca­tors that do not help us a lot now in fore­cast­ing the next move in the price of Bit­coin. Watch the tech­ni­cal analy­sis video above to see a bet­ter expec­ta­tion (IMHO).

  1. Vol­ume analy­sis: 4 out the last 5 days have seen healthy vol­ume, sup­port­ing the bull­ish dri­ve. All vol­umes are above the 20 mov­ing aver­age. Look­ing for­ward, an addi­tion­al and unusu­al vol­ume spikes, should it hap­pen, may indi­cate a buy­ing exhaus­tion and upcom­ing trend shift (from bull­ish to bearish)

  1. The Bit­coin tech­ni­cal analy­sis video above (a rec­om­mend­ed watch for any seri­ous cryp­to fol­low­er!) uses sev­er­al time peri­ods to deter­mine the long-term trend and short-term trade chances. Specif­i­cal­ly, watch the month­ly, week­ly and dai­ly time­frames on the BTCUSD video analy­sis (at the top of this page) demonstrated.

Vis­it ForexLive.com tech­ni­cal analy­sis for addi­tion­al per­spec­tives and trade Bit­coin or any oth­er cryp­to asset at your own risk only.

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