Technical analysis update: Bitcoin (24th January 2022)
Bitcoin reached a new low of 33 503.40 USD. Much has not changed since our last update on BTCUSD. We continue to maintain a bearish stance on the cryptocurrency market overall. We expect the downtrend to continue and our view is still supported by bearish fundamental and technical factors which are detailed below. Since our two latest price targets were reached recently we would like to set a new short-term price target for BTCUSD to 32 500 USD. Additionally, we would like to set a medium-term price target for BTCUSD to 30 000 USD.
We would like to note that there is a FOMC meeting this week. Investors will get more clues on upcoming rate hikes and possible tightening steps by the FED. We continue to view these steps by the U.S. central bank as very bearish for the overall cryptocurrency market.
Illustration 1.01
Picture above shows the weekly chart of BTCUSD. It also shows 10-week SMA and 20-week SMA. These two averages recently confirmed the downtrend by performing bearish crossover.
Technical analysis - daily time frame
RSI remains in the oversold territory which reflects extreme strength of the downtrend. MACD and Stochastic remain bearish. Same applies for DM+ and DM-. ADX increases which suggests the downtrend is gaining more strength. Overall, the daily time frame is bearish. However, it also signals caution as RSI reached oversold condition and price deviated too much from its short-term simple moving average.
Illustration 1.02
Picture above shows the daily chart of BTCUSD. It also shows buildup in volume over a certain period. It also shows a drop in volume over the weekend despite the price continuing lower.
Technical analysis - weekly time frame
Weekly time frame is consistent with the daily, which is very bearish. RSI, MACD and Stochastic are all bearish. Same applies to DM+ and DM-. ADX increases which suggests that the bearish trend of higher degree is gaining strength. Overall, the weekly time frame is bearish.
Support and resistance
Short-term resistance sits at 37 300 USD which coincides with the 10-day Simple Moving average. Major support lies at 28 600 USD. Resistance 1 is at 39 573.21 USD and Resistance 2 is at 41 967.50 USD. Resistance 3 lies at 45 478.74 USD. Important psychological support can be found at 32 500 USD and then at 30 000 USD.
Please feel free to express your own ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.
We would like to note that there is a FOMC meeting this week. Investors will get more clues on upcoming rate hikes and possible tightening steps by the FED. We continue to view these steps by the U.S. central bank as very bearish for the overall cryptocurrency market.
Illustration 1.01
Technical analysis - daily time frame
RSI remains in the oversold territory which reflects extreme strength of the downtrend. MACD and Stochastic remain bearish. Same applies for DM+ and DM-. ADX increases which suggests the downtrend is gaining more strength. Overall, the daily time frame is bearish. However, it also signals caution as RSI reached oversold condition and price deviated too much from its short-term simple moving average.
Illustration 1.02
Technical analysis - weekly time frame
Weekly time frame is consistent with the daily, which is very bearish. RSI, MACD and Stochastic are all bearish. Same applies to DM+ and DM-. ADX increases which suggests that the bearish trend of higher degree is gaining strength. Overall, the weekly time frame is bearish.
Support and resistance
Please feel free to express your own ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.
Сделка активна:
BTCUSD completed retracement towards its short-term moving average in shortlived bounce to 38 050 USD. After that BTCUSD formed new low at 32 950.72 USD.
Сделка закрыта вручную:
BTCUSD bounced back above 37 500 USD today. Tomorrow there is FOMC meeting which will provide investors with more clues on future tightening steps by the FED. If FED backtracks on its recent hawkish narrative it is possible that it may have bullish impact on cryptocurrencies. We would like to abandon our short-term and medium-term price targets. We would like to wait until FOMC releases statement tommorow. We will reasses situation after that and then we will update our thoughts on BTCUSD.
