In recent days, we talked about the fatigue of buyers that is reflected in the BTC price chart. Yesterday we observed how this situation was able to bring the price towards USD 9,076, after the bulls achieved a maximum of 3 months, USD 9,615.
However, after the bears pushed the price back, they did not have enough strength to generate a temporary trend change; As a result, today bulls are strengthened, quickly eliminating losses from previous hours.
To know the current situation, and thus predict possible future movements, we perform the technical analysis of Bitcoin that you find below:
From the chart with weekly candles, the scenario remains very positive, as we have commented for several publications.
After the breakdown of a resistance located at USD 7,750, buyers took enough confidence to initiate an upward trend, capable of breaking the EMA of 8 and SMA of 18, indicators that had followed the price during the downtrend seen in the last months of 2019. Currently these moving averages are crossed upwards, this being an important sign of the start of an important rally.
The 200-week SMA is also bullish, this being an indicator that follows the general trend of the price of Bitcoin.
After the rise that the price has been experiencing during these first days of 2020, the USD 9,550 was reached; and this is a resistance level generated by a previous lower maximum of the bearish structure that was maintained for several months in 2019. This resistance could cause a significant corrective movement; However, the current moment indicates that it will be exceeded, with the intention of looking for the next area, close to USD 10,000.
The technical analysis of Bitcoin from the daily timeframe continues to yield bullish signals.
The moving averages EMA of 8 and SMA of 18 are kept upward, and operated as dynamic supports.
The 200-day SMA is currently bullish, after being effectively broken on January 28.
The RSI in the daily temporality showed an important divergence, which indicates a backward movement due to weaknesses of buyers, which could be discounted in the slight fall that the price experienced in past hours.
In terms of market structure, the price continues to make higher lows, and the movement we saw towards USD 9,076 can be classified as the most recent structural point. Meanwhile, the former is located at USD 8,250; This must be broken to observe a transition of the bullish structure observed in this temporality.
Bitcoin technical analysis, intraday timing
From the time frame of 4 hours, we can observe the EMA of 8 and SMA of 18 crusades down, but it is a situation that will change in a short time, product of the strong breaking candle that develops at the time of this writing.
LSMA of 200 4-hour sessions remains bullish, supporting the profits obtained throughout the month of January.
The RSI from the 4-hour chart has broken the downtrend line that locked the price for several days. After breaking the trend line, the RSI also became bullish again, this being an indicator of the continuation of the bullish momentum.
The structure observed in the 4-hour chart remains bullish, despite the attempt to break a support located at USD 9,215. The bears were not able to move the price below the zone that maintains the price in bullish structure, thus causing a false break in the temporal trend.
The previous highest minimum observed at this time is close to USD 8,900, so it had to be broken to observe a transition of the bullish structure that still remains in this time frame.
1 hour temporary
In the graph with candles of 1 hours we can observe the weakness of the bears to make a transition.
Buyers regained control again after breaking a small resistance located at USD 9,215. Hours later, after validating the break with a slight throwback, the bulls made a new impulse of the structure that is marked in the temporality of 1 hour.
The moving averages seen from this same temporality support the bullish scenario, observed through the analysis of the market structure.
The EMA of 8 and SMA of 18 made an upward crossing, and currently move away from the price, product of the search for a new high.
The 200-hour 1-hour SMA was effectively broken up, and could function as a mobile support if the price tries to make a small setback.
The RSI is totally bullish, demonstrating the strength of the bulls to quickly scare the bears before it was too late.
All our publications are informative, so in no case should they be taken as investment advice.
Creative editor and trader of cryptocurrencies, fiat currencies and commodities.