Bitcoin price, today, bounced off support once again, but the lack of higher highs and lower lows leaves continuing consolidation as the only likely option. A few breakpoints lie in price's path, and the first is approaching within the next 24 hours. This analysis is…
Bitcoin price, today, bounced off support once again, but the lack of higher highs and lower lows leaves continuing consolidation as the only likely option. A few breakpoints lie in price’s path, and the first is approaching within the next 24 hours.
In the 1-hour chart we see that price had bounced off support very convincingly on that last wave down. The indicators showed divergence for the end of the move and we can now expect, with some confidence, that the next target is to the upside. It may be $255 or higher, but we have to see a break out of the confines of consolidation.
Compared to the previous upside breakout, near 13 February, price is trading similarly.
If price can advance above the red 200MA on a valid trade signal, as well as cross the trend line from the all-time high – that would add to the daily chart’s borderline buy signal to create more confidence of a rally to the vicinity of $300. Bear in mind that the breakout may retest the long-term Fib/trend line before continuing.
Bitcoin price has been holding support for weeks. Sideways price movement has not given blatant clues of an imminent advance, but technical analysis suggests the market will have several launchpads in the coming week if it chooses to rally and advance to $300.
The Bitfinex depth chart shows the Bulls bearing down on price action.
The Buy/Sell Volume indicator shows that buying has been strong in the hour since the bounce.
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.
The writer trades Bitcoin. Trade and Investment is risky. CCN accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Last modified: January 25, 2020 10:10 PM UTC