Sat, Feb 04, 2023 @ 09:46 GMT
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Bitcoin Price Could Correct Before Fresh Increase

Key Highlights

  • Bitcoin price started a fresh increase above the $20,000 resistance.
  • It traded below a rising channel with support near $21,000 on the 4-hours chart.
  • Gold price is consolidating gains above the $1,880 resistance.
  • Crude oil price is correcting gains from the $82.40 resistance.

Bitcoin Price Technical Analysis

Bitcoin price formed a base and started a fresh increase above $18,500 resistance. BTC/USD surpassed key hurdles near $19,000 to move into a short-term positive zone.

Looking at the 4-hours chart, the price traded above the $20,000 resistance, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).

The price even spiked above the $21,000 level. A new multi-week high was formed near $21,623 and the price is now correcting gains. It traded below a rising channel with support near $21,000 on the same chart.

There was a test of the 23.6% Fib retracement level of the upward move from the $16,326 swing low to $21,623 high. On the downside, an initial support sits near the $20,400 level.

The main breakdown support sits near the $19,000 zone. If there is a downside break and close below $19,000, bitcoin might start another major decline in the coming days. In the stated case, it could revisit the $17,500 support or even test $17,000.

Conversely, the price might climb higher again above $21,000. The next resistance sits near the $21,500 zone. A close above the $21,500 level may perhaps start another steady increase in the coming days.

In the stated case, the price could rise towards the $22,500 level. Any more gains could set the pace for a move towards the $24,000 level.

Economic Releases

  • US Initial Jobless Claims – Forecast 215K, versus 205K previous.
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