Fri, Jan 27, 2023 @ 11:14 GMT
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Bitcoin Price Shows Signs of Important Reversal

Key Highlights

  • Bitcoin price started a fresh increase above the $16,750 resistance.
  • It broke a major bearish trend line at $16,760 on the 4-hours chart.
  • Gold price is gaining pace above the $1,870 resistance.
  • Crude oil price is facing a major hurdle near $77 and $78.

Bitcoin Price Technical Analysis

Bitcoin price formed a base and started a fresh increase above $16,550 resistance. BTC/USD surpassed key hurdles near $16,750 to move into a short-term positive zone.

Looking at the 4-hours chart, the price traded above the $16,800 resistance, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).

There was a clear move above a major bearish trend line at $16,760 on the same chart. Bitcoin price also spiked above the 50% Fib retracement level of the key decline from the $18,354 swing high to $16,268 low.

If the price climbs higher above the $17,400 ad $17,500 resistance levels, the price could rise further. The next resistance sits near the $17,860 zone. It is close to the 76.4% Fib retracement level of the key decline from the $18,354 swing high to $16,268 low.

A close above the $17,860 level may perhaps start another steady increase in the coming days. In the stated case, the price could rise towards the $18,350 level. Any more gains could set the pace for a move towards the $19,000 level.

On the downside, an initial support sits near the $17,000 level. The main breakdown support sits near the $16,800 zone and the 100 simple moving average (red, 4-hours).

If there is a downside break and close below $16,800, bitcoin might start another major decline in the coming days. In the stated case, it could revisit the $16,000 support or even test $15,650.

Economic Releases

  • EIA Crude Oil Stocks Change – Forecast -2.375M, versus 1.694M previous.
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