Bitcoin (BTC) – Exhibiting a slight tilt to the upside, but needs to surge beyond 18,400 to upgrade the medium-term outlookPosted on Sunday, January 8 2023 at 8:34 pm GMT+0000
Bitcoin (BTC) has risen in stair-step fashion during the first week of the year, bolstering a 4% increase in market value since January 1st opening price. But although the crypto-king finally managed to step over the 20-day exponential moving average, it is still lacking a clear trend, as reflected by the ADX which has been weakening below 25 during the last few weeks.
The neutral demeanor adopted has been accompanied by an exceptional decrease in market volatility that triggered a remarkable compression in the Keltner channels. However, momentum signals improved slightly during the last couple of days. The MACD jumped above its signal line and is currently flirting with the zero line, while the RSI is following a gentle upward trajectory in the positive region.
If the price reclaims additional ground, the upper Keltner channel at 17,300 may test the potency of the fresh generated positive traction. Steering higher, the key 18,200 – 18,400 encapsulating the latest high posted on December 14th could then try to cap price advances. In the event buyers conquer this barrier, they may then accelerate towards the 20,000 area before turning their attention to the early November peak at 21,500.
Alternatively, if positive forces start to fade and the price withdraws back beneath the 20-day exponential moving average, it could seek shelter around the 16,300 support bar related to December 19th low. The lower Keltner channel is located in the neighborhood, adding extra importance to the zone. Hence, any violation at this point will trigger an immediate test of the 15,600 – 15,400 band shaped by the November lows. Another push down here, could bolster selling interest towards the 14,000 region.
Summarizing, Bitcoin is exhibiting a slight tilt to the upside above the 20-day exponential moving average. However, to secure remarkable buying confidence the crypto-king will need to surge above 18,400.