Bitcoin (BTC) – Stretching short-term bull runPosted on Wednesday, January 12 2022 at 8:50 pm GMT+0000
Bitcoin (BTC) is stretching its bounce-off the fresh multi-month low, surging above the 3-week-old steep descending channel and last week’s resistance, confirming a non-failure swing formation on the four-hour chart.
Short-term technical indicators are also endorsing the current improvement in market sentiment. The 20-period exponential moving average is set to cross above the 40-period average and the MACD is strengthening above its signal line and just pivoted to the bullish region while the +DI of the ADX indicator crossed above the -DI, proposing additional gains.
A decisive break above the 38.2% Fibonacci retracement level of the last bearish wave at 44,340 will certainly underpin the recent positive shift in the short-term picture, likely producing another bullish extension towards 47,295 resistance, that being the 61.8% Fibonacci retracement level and the target of the downward channel. Beyond that, traders will target the December 27th high at 52,075.
In the alternative scenario, if the 38.2% Fibonacci level manages to press the price back beneath the reversal line at 42,750 and the downward channel, selling pressures will resurface triggering a fresh test of the 40,000 – 39,560 support base.
To summarize, the leading cryptocurrency is currently sustaining a bullish tone and a thrust beyond the 44,340 resistance boundary will likely add extra fuel to the ongoing bullish run.