Bitcoin Bounce? - Price Analysis Jan. 24th
The news is still choc-full of bearish news articles, posts and opinions. Let us not get swayed by the mainstream news into a particular stream of thinking, but let us look at what PRICE is doing. Price is the summation of all opinions and beliefs put into practice (buying or selling).
Bitcoin Big Picture (daily price chart)
After days of bearish movement lower, the price seems to be halting at the critical psychological level of 10,000.
A confluence of factors:
- The daily candle formation shows clear rejection of the critical round number level
- The current price level is at a 0.38 Fibonacci retracement level
- There is a weekly pivot level in this zone at 10,759
- The price has closed above the weekly pivot
- The channel bottom that formed on the daily chart is also near - this means fewer bears are keen to sell into this support area
To view a larger image: https://www.tradingview.com/x/Ih6o57kv/
Price Action on a Smaller Time Frame (1 hr. time frame chart)
- Price formed a double bottom pattern at the key area of support
- Price has made a higher high (taken out previous high structure)
- The trend indicator is showing bullish divergence (the price made a lower low, but the indicator plotted a higher high)
To view a larger image: https://www.tradingview.com/x/n18HXUxy/
Conclusion: Buyers are coming back into the market?
In my opinion, Bitcoin has seen the worst of the sell-offs we have seen in the recent days. Price is respecting some major support zones and is reacting positively from them. Selling BTC now would not be advisable as the risk to reward equation does not add up. Instead look for more bullish price action the coming day(s).
Disclaimer: Do your homework!
This post is written to inform only. It is in no way financial advice, but rather my opinion of the markets. Trading involves risk. Risk only what you can afford to lose. Make solid trading decisions based exclusively own due-diligence!
Comments, feedback and tips are all welcome! Don't be shy.
Maybe this post helped or inspired you in some way. I appreciate any and all comments on this post. Maybe I am missing something that you could add to this post? If reading this has had some value to you, please consider re-steeming or upvoting this post!
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A related post you might be interested in reading: "Bitcoin Talking Heads" - https://steemit.com/bitcoin/@nzfxtrader/pay-attention-to-the-bitcoin-talking-heads
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Bitcoin has been into an irregular rate lately... It's important to educate ourselves, or just do our homework, as you well said. Let's take wise choices! Thanks for your post, it's elightening!
Yes, the price of #BTC has been very volatile - which is good because it can give us many setups/opportunities to trade this #Bitcoin beast!
Yeah, that's right. The market gets way more active and versatile!
I would love to agree but I have seen many traders and experts saying BTC will need to reach 8k usd price first. Then we will finally see a full recovery...
HODL tight, we are going back down to retest that 10k usd support...
I expect a recovery on the 26th or 27th when hopefully we have reached 8k usd buy target and bitcoin futures contracts end.
In February to the moon we go! :)
EDIT: Bitcoin seems to bounce a little bit on 10600 usd price, maybe we are already bullish...
Bears should soon run out of BTC to sell...
Cheers!
Good analysis, thanks! Short term bottom does seem plausible but the resistance above will be hard to go through with trades looking to sell within the range established. I'm hoping we can push higher so we do not establish a lower high on the daily. If not, the bearish signal could remain (despite what seems like a double bottom).
Great analysis. I personally agree- it's only a matter time until the post Jan hike. This has happened ever January for the last 4 years!
Great comment, thanks. I agree: Seasonality has a role to play this time around also.
Absolutely. HODL if you have the gut for it :)
Steem was created to bring great content to everyone. Thank you for fulfilling the prophecy
Thank you for your comment and kind words. I like to think this post was just okay... I'm working on great ;-)
Thanks for all the great, value-adding comments! REALLY good to see.
@originalworks #bitcoin #btc
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