29 January 2021, 11:01
2 min reading
Over the past days, the price of Bitcoin has increased by almost 5% and is trading near the $32,500 mark. At the same time, yesterday we observed high volatility and increased trading volume, which indicates the activation of market participants.
This affected the entire cryptocurrency market, which also showed growth yesterday.
Let’s look at the Bitcoin chart and see what to expect from it in the near future:
Before showing an increase yesterday, the price of Bitcoin dropped significantly and reached the level of $30,800. But buyers did not allow the price to go down and started buying Bitcoin. As a result, this led to the fact that the price of Bitcoin increased by $3,500 and reached $34,300. However, we are now seeing a slight correction of this growth.
The descending triangle is clearly visible on the 4-hour and 1-hour timeframes. At the same time, Stochastic shows overbought on these timeframes. Bollinger Bands also indicate a fresh decline towards the $30,000 level.
But on the daily timeframe, the picture is different:
Over the past 7 days, the price of Bitcoin has fluctuated in the range of $30,000 — $34,000. Stochastic indicates that the chart is near the oversold line. In addition, the price has been near the lower Bollinger border for a long time, which means that now it is necessary to wait for a movement to the upper border, which is now at $40,000. The MACD has also started to show signs of a reversal over the past week.
All this indicates that now we see a set of positions in this range for a further breakthrough. This is additionally indicated by the fact that yesterday’s candlestick broke the descending triangle upward and fixed there.
Therefore, we expect the next big move to be Bitcoin’s rise to the $40,000 — $45,000 range.