Analysis Bitcoin Technical

Bitcoin Price Technical Analysis for 01/22/2018 – Hope for the Bulls!

Sarah Jenn | January 22, 2018 | 2:27 am
bitcoin
Analysis

Bitcoin Price Technical Analysis for 01/22/2018 – Hope for the Bulls!

Sarah Jenn | January 22, 2018 | 2:27 am

Bitcoin Price Key Highlights

  • Bitcoin price recently broke past the descending trend line resistance and has reached the $13,000 level before making a correction.
  • Applying the Fib extension tool on the breakout move shows the next potential upside targets.
  • Technical indicators are also suggesting a pickup in bullish momentum.

Bitcoin price could be ready for an uptrend as price is completing its retest of a broken descending trend line.

Technical Indicators Signals

The 100 SMA is still below the longer-term 200 SMA to signal that the path of least resistance is to the downside, but an upward crossover seems imminent. Once completed, it could indicate a pickup in bullish pressure and draw more buyers back in.

The next upside target could be at the 38.2% extension around $12,580 then the 50% extension closer to the $13,000 mark. Stronger bullish pressure could take it higher to the 61.8% extension at $13,451 then the 76.4% extension near $14,000. The full extension is located at $14,859.

Stochastic is on the  move up to indicate that buyers are present while RSI has more room to climb, so bitcoin price might follow suit. A return in bearish pressure, on the other hand, could put bitcoin price back below the trend line to resume its drop.

Market Factors

Bitcoin price appears to have drawn a boost from more positive updates in South Korea regarding the operation of bitcoin exchanges. At the same time, dollar weakness could be in play for much longer as the US government shutdown persists.

Over the past few days, it has been confirmed that there will be no cryptocurrency ban in South Korea and that bitcoin futures might even be allowed. Keep in mind that this Asian nation accounts for majority of bitcoin activity worldwide, so the news could revive volumes in the days ahead.

In other parts of the world like China and India, there are still efforts to limit bitcoin trading.

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  • Mid January always has a downturn in Bitcoin, it is basically a tradition… and so far is always a good time to buy. Average recovery time is usually about 40 days from the bottom, which passed a few days back.

  • Fioribitcoin

    If i put all my usd in bitcoin, at some point, i would once again desire my usd back. This is because USD is far superior in performance in this world compared to bitcoin. Therefore, why does bitcoin have any value at all? Although, reading the charts makes it tempting to trade

    • Shawn Peters

      Um.. no.
      The federal reserve has not had the gold to back the dollars in circulation for decades.

    • mrelaxed

      USD is the default currency world wide. It became the default because after WW2 it was the only currency that had enough gold in store to back it. (All of EU’s gold went to USA due to the war) However, because of Vietnam and domestic welfare programs Nixon had to cut the tether between USD and gold. Ever since then it’s been a matter of time before USD crashes as there is little reason to use it as the default currency besides being subservient to US and believing in it’s cause as world leader. China, Russia and parts of middle east and asia are allegedly planning to switch away from a USD based currency to limit the US’s military capabilities. Once that happens Crypto and Gold will sky rocket over night. As to your other question, Bitcoin has intrinsic value because it’s a monetary tool that’s trust free and automated. Does not need a government, or a bank, or people to store and transfer value.

  • Fioribitcoin

    Correct me if im wrong, but Satoshi goal is to replace banks services and govts fiat currencies correct?

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