Bitcoin (BTC) – Reached a pivot zone

Bitcoin (BTC) – Reached a pivot zone

Posted on Sunday, January 9 2022 at 9:58 pm GMT+0000

Bitcoin (BTC) is maintaining a strong negative bearing far below the simple moving averages but recently reached a vital pivot zone which actively provided both supports and resistances over the past year. The negatively intersected 50- and 100- day simple moving averages are endorsing the negative price action and the near completion of a golden cross within the 50- and 200-day simple moving averages is further promoting the negative outlook.

However, although the MACD is still amplifying its negative charge below both its signal and zero lines, the RSI looks to be setting the stage for a bounce off the 30 oversold threshold, signaling that buying interest could improve.

All eyes are now turned to the 39,500 September 21st low which can act as an ideal pivot point for a rebound. That said, for the bullish argument to gain credence, the world’s leading cryptocurrency will initially need to close above the 45,500 support turned to resistance line. If that is the case, the rally would see a sharp extension towards the 50,000 – 52,000 area.

Nevertheless, following a decisive break of the aforementioned support at 39,500, the bears will target the 161.8% Fibonacci extension of the 42,000 – 52,000 up-leg at 35,800. Next, they will likely push towards the 30,000 – 28,600 area linked to a raft of lows posted between May and July, encapsulating the 227.2% Fibonacci level.

To summarize, Bitcoin (BTC) is maintaining a bearish profile on the daily timeframe and it would be interesting to see if the 39,500 key support can stabilize the sell-off.