fxs_header_sponsor_anchor

Bitcoin price analysis: This stability will continue

  • Bitcoin starts the week’s trading strong as it holds grounds above $4,000.
  • The asset records incredible gains in two weeks as trading volume surge.
  • BTC/USD is likely to correct above $4,100 but $4,200 is out of reach.

Bitcoin bulls ended last week strongly with gains over the weekend zooming past $4,000. Moreover, the asset is still maintaining its position above the same level, although it was the bullish trend failed to break above $4,100.

According to the data on CoinMarketCap, the largest crypto by market capitalization is still trading in the green with gains of 4.89% in the last 24 hours. Bitcoin’s 24-hour trading volume has increased considerably over the last few days as well from $4.5 billion on January 3 to the current $5.7 billion. The market cap has also corrected higher from $66 billion to $70 billion at the time of writing in the same period.

Prior to the breakout that kicked off around $3,800, Bitcoin price had formed a contracting triangle in the 1-hour range as observed in the chart following the retracement from the recent high at $4,200. On the downside, the bulls found refuge at $3,600. The price traded in sideways consolidation with the upside capped at $3,900. However, the contracting triangle saw BTC/USD spring up in an engulfing candle that blasted past the resistance at $3,900 and claimed position above $4,000. In addition, the bull move zoomed above $4,100 forming a 2-weeks high around $4,086.

Presently, Bitcoin is trading at $4,021.23 and is embracing the support we mentioned in the earlier analysis at $4,020. As per the status on the chart, BTC/USD is likely to correct above $4,100 but $4,200 is out of reach, at least for now. Besides, the above support $4,000 is a resistance turned support while the 100-day Simple Moving Average (SMA) at $3,900 is the next support zone. Other vital support levels include $3,800 and $3,600 respectively.

BTC/USD 1-hour chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.