Bitcoin price is continuing to make higher highs which confirm the bullish momentum of the market throughout the past few days. We have been adding up the bullish signals via our daily analysis articles this week.
Bitcoin Price Technical Analysis
By observing the 1 day Bitfinex BTC/USD charts from tradingview.com (look at the below chart), we can see that bitcoin price closed at increasing highs on 2 successive days. At the time of the writing of this article, the price exceeded $233 and is expected to increase even more to surpass yesterday’s closing price. By plotting the MACD on the same 1 day charts, we can see that the short term moving average line (blue) has crossed above the long term moving average line (red), which confirms continuation of the bullish momentum of the market.
By studying the 4 hour Bitfinex BTC/USD charts (look at the below chart), we can see that the price increased from $210 to around $243 on the 21th of January. The later decline from $243 to around $225 can be viewed as a 50% correction of the bullish wave, which can also be proven by continuation of the bullish advance afterwards.
It seems that the market is highly influenced by a general belief that bitcoin is recovering its value. A buying frenzy that will push the price above the $256 resistance is inevitable. Buying at $230 is likely to be profitable during the next 48 hours, with a take profit at $260 and a stop loss at $220.
Charts from Bitfinex.