Bitcoin Price Facing Its First Major Test of 2020, Which is On The Weekly: BTC Analysis & Overview

Bitcoin had seen a grand opening to the new decade, following a decent surge of roughly $1000 in the first days of 2020.

After reaching a high of $8400 last Wednesday, Bitcoin had encountered resistance and quickly turned around. However, the coin continues to look healthy and positive, consolidating safely above the $8000 benchmark.

Yesterday we saw Bitcoin gearing down towards the $7700 support, along with the crucial mid-term descending trend-line (that was started forming during June 2019, marked on the following daily chart).

Bitcoin touched it, in order to confirm the line as resistance-turned-support level, and from there, quickly turned its pace back up to where it trades as of writing these lines.

As mentioned above, the short-term looks bullish. In the longer term, the next real test might be the 200-days moving average line, which is currently around $9200.

Looking at the bigger time-frame, the weekly chart, we can see Bitcoin reaching accurately onto the white line, which is the critical moving average 21 weeks. The bulls would seek a weekly candle close above $8200, and another green candle for the following next week.

Total Market Cap: $216 billion

Bitcoin Market Cap: $147 billion

BTC Dominance Index: 68.0%

*Data by CoinGecko

Key Levels To Watch & Next Targets

– Support/Resistance levels: As of now, Bitcoin is safely consolidating above $8000, which is the first support. A little below lies $7850 and $7700. Further down is the $7466 (the 61.8% Fib retracement level), and $7300 – $7400.

From above, the first level of resistance is the $8300 – $8400 price area, which is the high from last Wednesday. In case of a breakout, then Bitcoin will likely test $8600 and $8800 (stronger resistance), before $9000 and the MA-200 (light green line on the following daily chart, ~$9200).

– The RSI Indicator: The momentum indicator is tracing the recent price action, and so far – so good.

A bearish sign might be coming on behalf of the Stochastic RSI oscillator: The last had gone through a bearish crossover and is about to enter the neutral territory.

Trading volume: As expected, the past two days of consolidation were followed by smaller volume candles; however, compared to the past month, the volume levels of the past week were decent high.

BTC/USD BitStamp Weekly Chart

btc_jan11_w-min

BTC/USD BitStamp 4-Hour Chart

btc_jan11_4h-min

BTC/USD BitStamp 1-Day Chart

btc_jan11_d-min

Enjoy reading? Please share:

Click here to start trading on BitMEX exchange and receive 10% discount on fees for 6 months.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.
Technical analysis tools by Coinigy.


You might also like:


The post appeared first on CryptoPotato

Buy Bitcoin with Credit Card

BitMex Leverage Trading

Automated Trading Bot

Related Posts

Leave a Reply

Bitcoin (BTC) $ 70,037.77 1.11%
Ethereum (ETH) $ 3,542.69 1.09%
Tether (USDT) $ 1.00 0.04%
BNB (BNB) $ 609.59 3.10%
Solana (SOL) $ 185.84 0.79%
Lido Staked Ether (STETH) $ 3,532.84 1.12%
XRP (XRP) $ 0.615117 1.31%
USDC (USDC) $ 1.00 0.04%
Dogecoin (DOGE) $ 0.213205 5.32%
Cardano (ADA) $ 0.64211 1.90%