TRENDING:

GBP/USD

XAU/USD

Bitcoin may be ready for recovery as the Chinese New Year is behind us

Bitcoin's sell-off is typical for the Chinese New Year celebrations period.
BTC/USD needs to regain $8,450 to mitigate immediate bearish pressure.

Tanya Abrosimova Independent Analyst

Bitcoin (BTC) has lost nearly 6% of its value during recent seven days and hit the low of $8,217 on Friday. At the time of writing, BTC/USD is changing hands at $8,330 with the short-term recovery capped by SMA50 1-hour at $8,370. Bitcoin's market share has settled at 66.2% after a short-loved dip below 66.00%.

Bitcoin's network statistics

The share of Bitcoin addresses "in the money" recovered from 63% registered on Thursday to 70% at the time of writing, according to the statistics provided by Intotheblock. Notably, the volatility has been moving down together with the price with some lag. Thus, the 30-day volatility topped at 39.2% on January 20 and slipped to 38.79 by press time.

Chinese New Year effect

Several cryptocurrency analysts believe that the recent Bitcoin's sell-off is related to the Chinese New Year. Thus, Alex Kruger published statistical data of Bitcoin's price movements during this period, which confirms that the first digital coin tends to slide down ahead of celebrations.

Some think the Chinese New Year may impact $BTC negatively, as people sell bitcoin to purchase presents. Chinese New Year starts with the 2nd new moon after the winter solstice. This year it falls on Jan/25.

The expert concluded that the sell-off was not unusual and the recovery wouldn't be long in coming.

BT/USD: technical picture

From the long-term point of view, We will need to see a sustainable move above $8,450 for the upside to gain traction. This pivotal resistance is created by 50% Fibo retracement for the upside move from December 2018 low to July 2019 high. Once it is out of the way, the recovery may be extended to the next important barrier $8,650 followed by SMA100 daily on approach to $9,000.

On the downside, strong support is created by $8,000. This zone is reinforced by SMA100 daily, and it has the potential to slow down the bears. The next important barrier is created by the broken downside trend line at $7,800.

BTC/USD daily chart

Author

Tanya Abrosimova

Independent Analyst

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

Solana Price Forecast: SOL consolidates as spot ETF inflows near $1 billion signal institutional dip-buying

Solana (SOL) price hovers above $131 at the time of writing on Monday, nearing the upper boundary of a falling wedge pattern, awaiting a decisive breakout.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH and XRP face pressure near key technical barriers

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) hover around key levels on Monday after correcting slightly in the previous week. The top three cryptocurrencies by market capitalization could face increased downside risk as bearish momentum builds across key indicators.

Top Crypto Losers: DASH, SPX, PENGU – Privacy and meme coins lose ground

Altcoins, including Dash (DASH), SPX6900 (SPX), and Pudgy Penguins (PENGU), are leading losses as the broader cryptocurrency market remains cautious ahead of the macroeconomic data releases, such as the US Nonfarm payroll report, CPI data, and the Bank of Japan’s rate-hike decision.

Top 3 Price Prediction: BTC and ETH eyes breakout, XRP steadies at support

Bitcoin (BTC) and Ethereum (ETH) are nearing the key resistance levels at the time of writing on Friday, and a successful breakout could open the door for a fresh rally. Meanwhile, Ripple (XRP) is stabilizing around a crucial support zone, hinting at a potential rebound if buyers maintain control.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.