Bitcoin Technical Analysis – January-4-2024

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FxNews—On Wednesday, January 2nd, 2024, The Bitcoin price experienced a significant decline from $45,902. This decline occurred while the BTCUSD pair traded above the $44,300 resistance, and the general sentiment was bullish on Bitcoin’s price.

Bitcoin Technical Analysis – January-4-2024

The digital gold is currently ranging inside the bullish flag, suggesting that Bitcoin’s uptrend may not have ended yet. The RSI indicator signals divergence, indicating that the market might enter a consolidation phase or reverse. The trend reversal scenario appears weak because the Bitcoin bears failed to stabilize the price below the pivot area. It seems BTCUSD is consolidating its recent gains.

Bitcoin Technical Analysis - January-4-2024

Bitcoin Technical Analysis – January-4-2024 | 4-hour Chart

The Bullish Scenario

The BTCUSD trend is bullish as long as the pair remains inside the upward channel. The $41,635 deck supports the uptrend, so it is likely to continue. In this scenario, the first hurdle is the R1 resistance (the $6,652 mark); if this level is breached, the next bullish target would be the $50,000 psychological level.

The Bearish Scenario

On the flip side, for the BTCUSD price downward trajectory from yesterday to continue, the bears must cross below the bullish flag and stabilize the price under the pivot ($41,635 mark). In this case, the bitcoin price might fall to the 38.2% Fibonacci level of $38,000.

  • 4 January 2024