BTC consolidates below the $14,000 price range and is now even consolidating the gains again but it has to stay above the 100 hourly SMA for a fresh increase. In today’s bitcoin news, we take a closer look at the analysis.
Bitcoin started a downside correction after forming a new high of $14,080 level. The price traded above $13,600 support and the 100 hourly simple moving average with a bearish bullish trend lien that formed near the support of $13,580 on the hourly charts of the pair. The pair has to stay above the $13,500 and the 100 hourly simple moving average to continue even higher. Over the past week, there was a steady increase in Bitcoin’s price above the $13,500 resistance. BTC broke this resistance and settled well above the 100 hourly simple moving average.
The price spiked above the $14,000 resistance before starting a downside correction while there was a break below the $13,800 support level. The price traded below the 50% fib retracement level from the upward movement at $13,430 swing low to $14,076 high. The price remained above the $13,600 level with a major bullish trend line forming with support close to $13,580 on the hourly charts of the pair.
The trend line is close to the 61.8% fib retracement of the upward movement from the $13,430 swing low to $14,076 high. The 100 hourly simple moving average is also following the trend line close to $13,850. As long as the BTC price is above the trend line support and the 100 hourly SMA it could start a fresh increase. On the upside, the initial resistance is close to the $13,800 level. The main resistance is getting closer to the $14,000 level so a break above it, could open the doors for more rallies towards $14,500.
If bitcoin fails to stay above the $13,600 support levels, there’s a risk of a downside break as well. As BTC consolidates below, the bears could try and test the $13,000 support levels in the upcoming days. the hourly MACD for the pair is in the bearish zone while the hourly RSI is well below the 50 levels. According to an analyst, we should expect to see Bitcoin surpassing the $14,000 price range once the market bleeding stops as over the past few days the altcoins were beaten up. Some of the top digital assets aside from Bitcoin plunged by a few percent against the US dollar even as Bitcoin hit the new year-to-date highs
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