In today’s comprehensive Bitcoin technical analysis, we will first scrutinize the price action of the currency pair in the daily chart. Following that, we will look into what could be next for the BTCUSD by scrutinizing the technical indicators as well as key Fibonacci levels.
Bitcoin Technical Analysis
FxNews – The price of bitcoin is ranging upward in the bullish channel after the digital gold tested the 23.6% Fibonacci retracement level with a double bottom pattern. The bitcoin price is currently nearing the December high, the $44,786 mark. Our popular technical indicators give interesting signals. The Awesome Oscillator shows a divergence signal. This indicates that the Bitcoin price may step into a consolidation phase or maybe experience a dip in price.
The December high plays the resistance role in our Bitcoin technical analysis. Analysts at FxNews advise patience for the bullish traders. It is evident that the BTCUSD is overvalued at this time. With the year ending, there will be a shrinkage in the market liquidity. Therefore, we suggest the bulls to consider one of the following options for entering the market.
We suggest that the Bitcoin buyers consider one of the following scenarios for entering the bullish wave.
- A break above the December high could signal the continuation of the upward trajectory. When this resistance is breached, the way to the $48,000 would be paved.
- The second plan to join the bullish wave is to wait for a pullback to lower levels. We have a divergence signal from the Awesome oscillator that might lead the price to decline. If this technical analysis plays out, the 23.6% Fibonacci level can provide a decent price to plan going long on the digital currency.
Please note, forex traders must monitor the price action and the candlestick patterns near the key levels for informed trading decisions. Therefore, stay with us to receive the latest analysis on the Bitcoin market.
FxNews wish you happy holidays.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.