Bitcoin (BTC/USD) Price Technical Analysis for Jan 18, 2018

Free $100 Forex No-Deposit Bonus

Bitcoin seems to have finished its correction as it formed a reversal candlestick upon testing the daily rising trend line. This is close to a Fibonacci retracement level that’s holding as support as well.

Applying the Fibonacci extension level this time shows the next upside targets. The 38.2% extension is close to the former support at $13,00 while the 50% level is also in line with another area of interest near $16,000. The 61.8% extension is at $17,879 then the 76.4% extension is at the all-time highs close to $20,000. The full extension is at $23,243.41.

The 100 SMA is above the longer-term 200 SMA on the daily chart so the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. The gap between the moving averages is also widening to reflect stronger bullish momentum.

The 100 SMA also lined up with the rising trend line to add to its strength as support. Stochastic is pulling up from oversold levels to signal a return in bullish momentum. RSI has room to fall, though, so it may be a while before buying picks up and the rally resumes.

Buyers seem to be hopping in at cheaper levels as the $10,000 major psychological barrier is being tested. If this keeps losses in check, bitcoin could be able to resume its climb to the swing high and beyond. A break below the trend line, however, could lead to a larger correction to the 200 SMA dynamic inflection point closer to $7,000.

Fears of the crackdown in China and South Korea negatively influencing volumes and global activity was seen as the main culprit for the slide, which drew more and more sellers in. Other analysts blamed the deeply overbought market and see the recent pullback as mere reversion to the mean.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.