Bitcoin price analysis

I had suggested initiating long positions in Bitcoin at $15,500 in my previous analysis. The level was reached yesterday, Jan. 5, which triggered the long position. Subsequently, the price broke out of the resistance at $16,500 and rallied to a high of $17,083.67, where it witnessed profit booking.

Currently, the cryptocurrency is in a pullback. It is likely to find support at the $15,500 mark that had served as resistance earlier. The trendline support is also at the same level.

The BTC/USD pair is still not out of the woods. If it returns from the current levels and breaks the neckline at $13,000, it will complete a complex head and shoulders pattern, which will be a bearish sign.

Therefore, we recommend keeping a stop loss of $15,000 in our positions. It’ll reduce our risk.

On the upside, we expect a rally to $19,000 levels if Bitcoin sustains above $17,000. But traders should trail their stops higher as the trade moves in their favor.