Bitcoin (BTC) staged a sharp recovery on Jan. 24 after falling to long-term support levels. Technical indicators are currently showing signs that the correction may be complete.
Ascending parallel canal
Bitcoin has been falling since hitting an all-time high on November 10, 2021. The move down eventually led to a break below the $40,800 horizontal support area, which is now believed to act as a resistance level.
The decline continued until Jan. 25 when Bitcoin hit a local low of $32,917. The price rallied shortly after (green icon) creating a bullish bar with a long wick below. This is seen as a sign of buying pressure.
Additionally, the bounce served to validate the ascending parallel channel support line that has been in place since April 2021.
BTC/USDT daily chart | Source: TradingView
Short term movement
The 2-hour chart shows the recent upward movement, which was initiated by bullish divergence in both the RSI and MACD. This is a development that usually results in a trend reversal to the upside.
After a bounce, Bitcoin hit a high of $37,550 before falling back down.
It is currently trading just above the 0.382 Fib retracement support at $35,800. The next supports are at $35,260 and $34,700. These targets are the 0.5 and 0.618 Fib retracement support levels, respectively.
One of these levels is expected to give BTC another boost.
BTC/USDT 2 hour chart | Source: TradingView
Count waves
The wave count shows that BTC has completed the ABC corrective structure that has been in development since April 2021. Waves are shown in black.
BTC/USDT daily chart | Source: TradingView
A closer look at sub-wave five shows that another bearish impulse is complete (red), further supporting this scenario.
While the number of alternative waves suggests another drop is possible, it still predicts a rally to test overhead resistances.
BTC/USDT 2 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.
Join CoinCu Telegram to keep track of news:Â https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Author
Market
Bitcoin Technical Analysis January 25th
Bitcoin (BTC) staged a sharp recovery on Jan. 24 after falling to long-term support levels. Technical indicators are currently showing signs that the correction may be complete.
Ascending parallel canal
Bitcoin has been falling since hitting an all-time high on November 10, 2021. The move down eventually led to a break below the $40,800 horizontal support area, which is now believed to act as a resistance level.
The decline continued until Jan. 25 when Bitcoin hit a local low of $32,917. The price rallied shortly after (green icon) creating a bullish bar with a long wick below. This is seen as a sign of buying pressure.
Additionally, the bounce served to validate the ascending parallel channel support line that has been in place since April 2021.
BTC/USDT daily chart | Source: TradingView
Short term movement
The 2-hour chart shows the recent upward movement, which was initiated by bullish divergence in both the RSI and MACD. This is a development that usually results in a trend reversal to the upside.
After a bounce, Bitcoin hit a high of $37,550 before falling back down.
It is currently trading just above the 0.382 Fib retracement support at $35,800. The next supports are at $35,260 and $34,700. These targets are the 0.5 and 0.618 Fib retracement support levels, respectively.
One of these levels is expected to give BTC another boost.
BTC/USDT 2 hour chart | Source: TradingView
Count waves
The wave count shows that BTC has completed the ABC corrective structure that has been in development since April 2021. Waves are shown in black.
BTC/USDT daily chart | Source: TradingView
A closer look at sub-wave five shows that another bearish impulse is complete (red), further supporting this scenario.
While the number of alternative waves suggests another drop is possible, it still predicts a rally to test overhead resistances.
BTC/USDT 2 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.
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 Coins to Buy Now: Qubetics Sells 200M Tokens to Raise Over $2.7M as Cardano and Avalanche Look to Strengthen Bullish Trend
Pepeto’s $600K Presale Highlights Vision for Supporting Memecoins Ahead of 2025
Press Release
Best Coins to Buy Now: Qubetics Sells 200M Tokens to Raise Over $2.7M as Cardano and Avalanche Look to Strengthen Bullish Trend
Pepeto’s $600K Presale Highlights Vision for Supporting Memecoins Ahead of 2025
