Today’s review will be brief, but no less meaningful and useful. The market situation has not changed much since our previous review. On 22 January, the support level was punctured sending the price down to the all-year low of $3,462. We’ve written and warned of a possible decline. We see buyers’ activity at $3,400: the price has quickly returned from that level to the below-support one and a growth attempt was made after that. The whole week, the price has lingered in a narrow range with minimum volatility.
The trading range is small: we see resistance between $3,670 and $3,680.
The MACD indicator in the buy zone, the moving averages at the time of writing are under the price. The EMA50 tends to cross the EMA100 from the bottom upwards, that is, a buy signal may emerge. Given the sluggish trading last week, the signal can be ignored. In the current situation, a decline to the support level is likely to be followed by an attempt to rise to the resistance level. We recommend you to trade cautiously – at the end of the week the market may come up with unpleasant surprises. In our previous review we gave a recommendation on pending orders for 22 January and they have generated a profit.
On the 4-hour timeframe, the situation has not changed during the week. The first resistance level is $3,680 and the support at $3,570.
The MACD indicator is in the sell zone, but tries to get out into the positive zone. The moving averages are above the price. The EMA50 are putting up resistance at $3,656 which the price has approached. The next resistance at $3,770 determines the EMA100 and will hold back growth.
As a result, the week will be remembered only by the support puncture on 22 January, but, overall, the situation has remained unchanged. The price continues to be uncertain making a drop to the last year’s all-low more likely.
The U.S. government protracted shutdown* is playing against the market. This resulted in the Chicago CBOE withdrawing the application for Bitcoin ETF from VanEck and SolidX.
VanEck will reapply for the launch of Bitcoin ETF after the U.S. government shutdown is over: “… instead of trying to slip through…, we just had the application pulled and we will re-file when the SEC gets going again.”
* Shutdown is the suspension of government, businesses or organizations for a specified period of time to resolve controversial issues and questions. It is common for the U.S. government in the process of adopting an annual budget.
During this time, the public authorities close down and their employees go on an unpaid leave.
We wish you all good profits and an enjoyable weekend.
Don’t miss our Monday review.