Bitcoin (BTC) Price Analysis: Bullish Test of 40256 Technical Support – 21 January 2024
Bitcoin’s price made some gains during the Asian session, reaching a high of 41749.99 after finding support around 40245.10. This successful test of buying pressure confirms upside price objectives related to levels at 24900 and 29201.40. However, there is potential for a downward move towards price objectives at 39225, 36174, 33123, 29348, and 23246 due to recent selling pressure at 49102 and 43569. It’s important to note that after reaching new multi-year highs, several technical support and buying pressure levels can be found at 39857, 37820, 37001, 36250, 34335, 32281, and 30850.
Key Levels and Indicators
During the recent rise to multi-year highs, significant technical levels at 47934, 48466, and 48647.72 were surpassed, indicating large stop orders. These levels are related to historical buying pressure and the all-time high of 69000. Above the current market price, possible upside targets are at 51701, 52121, 52971, and 53370. Moving averages indicate a bearish trend as the 50-bar MA (4-hourly) is below both the 100-bar MA (4-hourly) and the 200-bar MA (4-hourly). The same bearish indication is seen with the 50-bar MA (hourly) below the 100-bar MA (hourly) and the 200-bar MA (hourly).
The nearest moving averages to the current price are the 50-bar MA (4-hourly) at 42979.23 and the 50-bar MA (hourly) at 41464.83. Technical support levels are expected at 40625.68, 37321.80, and 34950.00, with expected stops below these levels. On the other hand, technical resistance levels can be found at 51707.77, 52121.96, and 53370.28, with expected stops above.
Technical Analysis and Indicators
Looking at the 4-hourly chart, the SlowK indicator is bullish and above SlowD, while the MACD indicator is also bullish and above the MACDAverage. Similarly, on the 60-minute chart, the SlowK indicator is bullish and above SlowD, and the MACD indicator is bullish and above the MACDAverage.
Note: This analysis is purely based on technical indicators and does not take into account any fundamental factors affecting the price of Bitcoin.
Hot Take: Bitcoin Finds Support as Bullish Momentum Continues
Bitcoin’s price has once again found support around the 40256 level, confirming the ongoing bullish momentum. Despite recent selling pressure, the cryptocurrency has managed to maintain its upward trajectory, testing new multi-year highs. Traders are closely watching key technical levels, including moving averages and support/resistance levels, to gauge the future direction of Bitcoin. While the current trend remains bullish, it is important to monitor developments in the market and any potential factors that could impact Bitcoin’s price. Overall, the outlook for Bitcoin remains positive as it continues to attract investors and establish itself as a prominent digital asset.
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