Bitcoin is Tentatively in a Continuation

Price Analysis Jan 15, 2021

Since the price of Bitcoin has been going up recently (from where it fell), we'll be going in to take another look at its price trajectory to see what the charts are showing us.

Let's take a look at what the first chart is showing us:

Above is Bitcoin on the H4 resolution.

The horizontal lines are the support & resistance points.

The golden line in the chart above is the EMA-50 and the dark green line is the EMA-100. Surprisingly, we can see that Bitcoin briefly dipped below both values during its sell-off a few days ago, but quickly returned above afterward.

Thus, we'll consider the support from the EMA-50 to still be valid at the time of writing, which is at $36.2k, only slightly below where the price is at currently ($38.9k).

The EMA-100 = $34k.

Librehash Reversion Ribbon V2

Based on what we can see from the Reversion Ribbon, there's a chance that we missed the bounce (but we were out at $41k, so this can hardly be considered a miss).

We're still on the H4 resolution here, so see below:

If we look a bit closer at the current action of the Reversion Ribbon, we can see that the latest candle on the Histogram is a bit lower than what it is currently.

There's no telling whether the current period will follow the trend or not. If it doesn't, that's good - if not, then potential danger ahead for bulls in a long position.

Panning Out to the 'Bigger Picture'

If we look at Bitcoin on the daily resolution, we can see a potential traded range:

The obvious overhead resistance here is at $40k.

A drop below, however, sees support at $33k:

Which is quite a distance from where we are currently:

The losses (if incurred) aren't too crazy though, so perhaps not something that we need to panic about if it comes down to it, but we've settled on $38.5k as an appropriate safe stop/loss assuming that we're trading on the H4 resolution (short-term sweet spot time frame).

Balance of Power RSI (Daily Resolution)

Here's some serious hope for the bulls for this indicator (see below):

For the first time (in a long time), we can see the upward curvature of the Balance of Power RSI, which means that the indicator is detecting an increase in buy pressure (accumulation).

In a bull market, that's always a positive sign.

For those that can't see that upward curvature that we're talking about, here it is:

Relative Strength Index(14) ; Daily Resolution

The RSI(14) is ambivalent on the daily resolution

There's a chance that the spike carries a continuation beyond the previous peak it was at (88), which - in that case - would mean that there's another run to squeeze out of this current exuberant run.

If we travel back to the Balance of Power RSI on the weekly resolution, we can see it trending back up once again:

Tags

cryptomedication

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