Dear friends, from now on, we will post analytical reviews of the price movement of the market’s main cryptocurrency
Our reviews will offer bitcoin’s technical analysis on different timeframes and consider impact of the crypto industry’s key events on its rate.
The 14 January ascending impulse was stopped by resistance at the $3,800 level.
After trying to break through this resistance level, the price went down again. The moving averages remain above the price. The EMA50 at $3,695 and the EMA100 at $3,780 act as local resistance and consequently will hold back Bitcoin’s growth.
The price is clamped in the formed triangle, which can be broken through in either direction. Downward movement will be contained at the $3,570 support level. The MACD indicator is in the sell zone, but tries to exit it into the buy zone.
On the 4-hour timeframe, the price has come close to the first resistance at the $ 3,700 level. The moving averages are above the price.
The EMA50 is at $3,780 — the closest possible level to the strong resistance at $3,800.
The next resistance is the EMA100 at $3,890. The MACD indicator is looking up, but is still in the sell zone. There are no clear signals of price growth.
On the day timeframe, the moving averages are above the price and tend to go down, indicating a continued downward movement. The MACD indicator is in the sell zone. Important resistance levels are $3,800 and the EMA50 at $4,100.
Support is at $ 3,570, $3,360 and the previous low at $3,215. Sluggish trading suggests lack of initiative both in the bears and bulls ‘camps’. However, the market bears are trying to beat the bulls, but so far to no effect. Bitcoins are bought on downward punctures, but without further upwards movement.
A piece of news important for the entire market emerged yesterday: Ethereum Constantinople hard fork was postponed due a critical security vulnerability in one of the EIP-1283 upgrades. The vulnerability could have enabled hackers to steal user funds. The event had an immediate effect on Ethereum price – it went down 6%. This development may give impetus to BTC as the market players will move their funds to the coin.
The overall picture is still suggests a downward trend. The risk of hitting the last-year all-low remains, however this scenario is hardly likely today. One can open long positions on punctures to the support levels.
We wish you all good profits.