Bitcoin Technical Analysis January 13th

Bitcoin (BTC) has risen sharply from its January 10 lows and is showing some signs that the correctional phase is over.

Eruption of the descending parallel canal

Bitcoin has been trading on a descending parallel channel since December 27th. This creates a long lower wick, which is often taken as a sign of pressure to buy.

On January 13, Bitcoin broke the channel’s resistance line, confirming that the short-term correction was over.

The next resistance is at $ 45,850, where it previously served as support. This is the 0.5 fib retracement resistance and the horizontal resistance range.

BTC / USDT 6-hour chart | Source: TradingView

Signals from the indicator

Technical indicators in the daily timeframe give bullish signals. This is particularly noticeable in the MACD, where its histogram has produced a very significant bullish divergence (green line). This is a sign that often anticipates upward movements.

In addition, consecutive higher momentum bars (green symbol) together with a bullish closing price give bullish reversal signals.

BTC / USDT daily chart | Source: TradingView

Count waves

Long-term waveforms still have some valid possibilities.

However, the short-term wave count shows that the pullback from the all-time high is complete (black). The number of partial waves is displayed in red.

BTC / USDT 4-hour chart | Source: TradingView

Due to the breakout above the channel and the deep retracement of potential subwave 4 (red), the current rally does not appear to be part of subwave 4.

So the most likely scenario suggests the correction has completed and BTC bottomed out on Jan 10 after a low of $ 39,558.

BTC / USDT 2-hour chart | Source: TradingView

You can see the Bitcoin 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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