Bitcoin Technical Analysis January 17th
Bitcoin (BTC) is showing bullish signs after bouncing off a long-term support area. It could start an upward move soon to retest higher levels.
Bitcoin is up slightly in the week of January 10-16, going from a low of $39,650 to a high of $44,500. However, all of the gain was contained within the body of the previous bearish candle.
Therefore, the rise cannot yet be considered part of a bullish reversal.
However, Bitcoin is still trading above the long-term horizontal support at $40,500.
BTC/USDT weekly chart | Source: TradingView
The daily chart offers a slightly more bullish outlook.
Firstly, it shows that Bitcoin created a long wick below (green symbol) just above the above support level.
More importantly, the MACD gave a strong bullish signal, generating successively higher momentum bars and almost crossing into positive territory. The MACD consists of short-term and long-term moving averages (MAs) and this increase means that the short-term MA is accelerating relative to the long-term MA. Entering the positive territory will do a lot to identify the trend as bullish.
The last time MACD crossed into the positive zone (green circle), it led to a significant surge in Bitcoin.
BTC/USDT daily chart | Source: TradingView
The six-hour chart also supports the possibility of an upward move. It shows that BTC broke above a descending resistance line and subsequently confirmed it as support (green icon). In most of these cases, an upward movement follows.
If there is any upward movement, the next resistance is at $45,850. This is the 0.5 Fib retracement resistance and horizontal resistance area.
The wave number also supports short-term upside moves.
BTC/USDT 6 hour chart | Source: TradingView
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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