Bitcoin (BTC) has recovered to $38,919 since falling below this zone on Jan. 21. The price has since retreated somewhat but may have completed a short-term corrective structure.
Recovery is in progress
Bitcoin has recovered and is rising after hitting a local low of $32,917 on Jan. 24. The upward move continued until Bitcoin hit a high of $38,919 on Jan. 26. This was short-lived as BTC created a long upper wick and fell on the same day.
It failed to move above the $38,200 resistance, which is both the 0.5 Fib retracement level and the horizontal resistance area.
Bitcoin needs to retrace this zone to create a short-term bullish structure.
BTC/USDT 2 hour chart | Source: TradingView
Long-term movement
The daily chart shows that the price created a long upper wick on January 26th, which is considered a sign of selling pressure.
However, it is currently approaching the lower Longwick territory created on January 24 to provide support.
BTC/USDT daily chart | Source: TradingView
Additionally, looking at the two-hour chart, Bitcoin is trading within the 0.5-0.618 Fib retracement support area between $35,200 and $35,900.
This is the most common Fib area that offers support after a sharp decline so it could start a reversal, which could make BTC make a higher low in the process.
BTC/USDT 2 hour chart | Source: TradingView
Count waves
Long term wave count shows that BTC has completed a major ABC correction contained within an ascending parallel channel.
In it, waves A and C have an exact ratio of 1:1, indicating that BTC bottomed on Jan. 24.
BTC/USDT daily chart | Source: TradingView
If true, the short-term wave count shows that BTC has completed sub-waves one and two (red). In it, the entire movement since January 26th has taken the form of an irregular flat (yellow) corrective structure.
The component waves A and C in this structure have a ratio of 1:1.61, which is the second most common in such structures.
Hourly BTC/USDT 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.
Join CoinCu Telegram to keep track of news:Â https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Author
Analysis
Bitcoin Technical Analysis January 27th
Bitcoin (BTC) has recovered to $38,919 since falling below this zone on Jan. 21. The price has since retreated somewhat but may have completed a short-term corrective structure.
Recovery is in progress
Bitcoin has recovered and is rising after hitting a local low of $32,917 on Jan. 24. The upward move continued until Bitcoin hit a high of $38,919 on Jan. 26. This was short-lived as BTC created a long upper wick and fell on the same day.
It failed to move above the $38,200 resistance, which is both the 0.5 Fib retracement level and the horizontal resistance area.
Bitcoin needs to retrace this zone to create a short-term bullish structure.
BTC/USDT 2 hour chart | Source: TradingView
Long-term movement
The daily chart shows that the price created a long upper wick on January 26th, which is considered a sign of selling pressure.
However, it is currently approaching the lower Longwick territory created on January 24 to provide support.
BTC/USDT daily chart | Source: TradingView
Additionally, looking at the two-hour chart, Bitcoin is trading within the 0.5-0.618 Fib retracement support area between $35,200 and $35,900.
This is the most common Fib area that offers support after a sharp decline so it could start a reversal, which could make BTC make a higher low in the process.
BTC/USDT 2 hour chart | Source: TradingView
Count waves
Long term wave count shows that BTC has completed a major ABC correction contained within an ascending parallel channel.
In it, waves A and C have an exact ratio of 1:1, indicating that BTC bottomed on Jan. 24.
BTC/USDT daily chart | Source: TradingView
If true, the short-term wave count shows that BTC has completed sub-waves one and two (red). In it, the entire movement since January 26th has taken the form of an irregular flat (yellow) corrective structure.
The component waves A and C in this structure have a ratio of 1:1.61, which is the second most common in such structures.
Hourly BTC/USDT 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.
Join CoinCu Telegram to keep track of news:Â https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Other Posts
Related Posts
Latest
Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6
Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!
Press Release
Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6
The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!
