Bitcoin Price Analysis Jan.11: BTC Tests a Critical Support Area

Following the negative sentiment which started yesterday, we’ve seen Bitcoin continue down to re-test the critical support at $3600. As we mentioned, the sharp decline could be anticipated, by looking at the number of shorts vs longs. What led to a long-squeeze.

It’s incredible how gains of two weeks were gone in just 10 hours, as said before: Bulls Walk Up the Stairs-Bears Jump Out the Window.

So far it seems that a correction is needed, and there is a large demand around this level. However, the situation is very fragile.

Looking at the 1-day & 4-hour charts

  • The next support levels are at $3600 (current area), and $3480 – $3500. The last is a crucial support zone. Breaking it down could lead Bitcoin to discover new lows hadn’t seen yet in 2018. Breaking down the $3500 could lead Bitcon quickly to re-test $3300 support.
  • The 4-hour Stochastic RSI oscillator had crossed over around the oversold area. We can say, with caution, that a correction could take place. Possible targets could be the significant support turned resistance $3700 (along with 200 days moving average line and Fibb retracement level 38.2% of the last decline), or even $3800.
  • The Daily Chart: The RSI level had broken down the long-term descending trend-line, and as of now it seems that support around RSI level 42 holds.
  • Trading volume: Yesterday’s daily volume is the highest level since December 21. That teaches us that the sellers are still around and still active.
  • As expected, BitFinex’s open short positions increased drastically to 24.5K.

BTC/USD BitStamp 4-Hour chart


BTC/USD BitStamp 1-Day chart



The post Bitcoin Price Analysis Jan.11: BTC Tests a Critical Support Area appeared first on CryptoPotato.

No comments:

Post a Comment

Important notice: Almost all online business are temporary only & it may be become scam at any point of the time, Hence, I/we request those who want to invest their hard earned money in that.. Please verify yourself before you invest & you are the only responsible for your own money..the website owner ( are not responsible for any lose, profit or scam. Admin *** महत्वपूर्ण सूचना: लगभग सभी ऑनलाइन व्यवसाय अस्थायी हैं और यह समय के किसी भी समय घोटाला हो सकता है, इसलिए / मैं उन लोगों से अनुरोध करता हूं जो अपनी कड़ी मेहनत के पैसे का निवेश करना चाहते हैं .. कृपया निवेश करने से पहले अपने आप को सत्यापित करें और आप आपके खुद के पैसे के लिए ही जिम्मेदार हैं .. वेबसाइट के मालिक ( किसी भी खो, लाभ या घोटाले के लिए जिम्मेदार नहीं हैं। व्यवस्थापक