Bitcoin Technical Analysis January 3rd, 2022

Bitcoin (BTC) is trading above critical Fib support level and has generated some bullish signs.

Weekly outlook

Bitcoin fell significantly in the week of December 27 through January 2, dropping to $ 45,678. After that, however, it rallied and closed at $ 47.286. This is important because the candle that engulfed the previous growth has not been invalidated.

Currently, Bitcoin is trading just above the fib retracement support at 0.618, which is at $ 44,300.

However, technical indicators paint a neutral picture.

The RSI, a momentum indicator, is right on the 50 line (red circle). This is a sign of a neutral trend. It takes a decisive move above or below this line for the direction of the trend to be clearer.

Likewise, the MACD, which is formed by the short and long-term moving averages (MAs), is falling, but remains in positive territory.

BTC / USDT weekly chart | Source: TradingView

Bullish divergence

BTC’s daily chart offers a much more bullish outlook. The main reason for this is that there is a bullish divergence in both the RSI and the MACD.

The key resistance is at $ 52,400, but there is also a stronger resistance at $ 58,750. This is both a horizontal resistance range and a 0.618 fib retracement resistance.

BTC / USDT daily chart | Source: TradingView

For indicators, the divergence of the MACD line is particularly important. Because when this happened the previous two times, there followed a significant movement.

Compared to the current signal, the previous divergence is clearer. As a result, BTC could continue to develop divergence before initiating a sharp move higher.

BTC / USDT daily chart | Source: TradingView

Short term volatility

Similar to the daily timeframe, there is a bullish divergence in both the MACD and RSI in the two hour timeframe. This is an indication that there is likely to be an upward move towards the aforementioned resistance levels.

BTC / USDT 2-hour chart | Source: TradingView

You can see the BTC price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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