Technical analysis update: Bitcoin (5th January 2022)
Bitcoin trades slightly above 46 000 USD and we continue to maintain bearish notion on it. Our short-term price target of 42 500 USD remains in place.
Technical analysis - daily time frame
RSI is bearish. MACD flattened out before crossing above 0 points which is also bearish. Stochastic is bearish too. DM+ and DM- show bearish conditions. ADX started to flatten; and it seems as if it would want to start increasing again. In such a case, that would suggest that the bearish trend is still present and regaining strength.
Illustration 1.01
Illustration above shows the daily chart of BTCUSD. It also shows a recent false breakout (from pattern resembling falling wedge) to the upside and its full retracement. Now we will observe whether BTCUSD manages to break below short-term support and subsequently make a new low.
Technical analysis - weekly time frame
RSI is bearish. MACD and Stochastic are also bearish. DM+ and DM- exhibit bearish conditions. ADX is relatively low which coincides with BTCUSD trading sideways prior to bearish breakout from the neutral zone.
Illustration 1.02
Illustration above shows the daily chart of BTCUSD. It also shows head and shoulders pattern being formed. We will observe whether Bitcoin manages to break below the neckline which would be extremely bearish for BTCUSD.
Support and resistance
Short-term support lies at 45 478 USD. Support 1 can be found at 41 967 USD and the major support level sits at 28 600 USD. Short-term resistance lies at 48 834 USD and Resistance 1 sits at 52 956 USD. Neutral zone appears between the short-term resistance and Resistance 1.
Our previous idea on BTCUSD from 30th December 2021:
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.
Technical analysis - daily time frame
RSI is bearish. MACD flattened out before crossing above 0 points which is also bearish. Stochastic is bearish too. DM+ and DM- show bearish conditions. ADX started to flatten; and it seems as if it would want to start increasing again. In such a case, that would suggest that the bearish trend is still present and regaining strength.
Illustration 1.01
Technical analysis - weekly time frame
RSI is bearish. MACD and Stochastic are also bearish. DM+ and DM- exhibit bearish conditions. ADX is relatively low which coincides with BTCUSD trading sideways prior to bearish breakout from the neutral zone.
Illustration 1.02
Support and resistance
Short-term support lies at 45 478 USD. Support 1 can be found at 41 967 USD and the major support level sits at 28 600 USD. Short-term resistance lies at 48 834 USD and Resistance 1 sits at 52 956 USD. Neutral zone appears between the short-term resistance and Resistance 1.
Our previous idea on BTCUSD from 30th December 2021:
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.
Trade closed: target reached:
Short-term price target of 42 500 USD was reached.
Trade active:
We would like to set new short-term price target to 40 000 USD.
Trade closed: target reached
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