Bitcoin breaking above the $8500 area may lead to create new high. Further upward pressure expected if price manages to clear above the Channel resistance. Check today’s Bitcoin Technical Analysis for more levels and insights on the cryptocurrency.
January 14, 2020 | AtoZMarkets.com – Bitcoin is currently at the edge of breaking above $8500 area. The price did manage to reach out the price level earlier but failed to sustain the bullish momentum above it. The upward move increased the Bitcoin’s market cap to $153.20 Billion. Since last week, Bitcoin gained over 7% though it is still down by 57% from its all time high price but such growth in Bitcoin is quite remarkable.
There are certain forecasts about Bitcoin that $8500 price area can work as reversal point and push the price lower again. Likewise, if the price manages to break above $8500 area then impulsive bullish pressure may also be observed. According to analysts, Bitcoin may reach $9000 soon.
BITCOIN Technical Analysis – January 14, 2020
The price has been quite consistent with the bullish momentum after bouncing off the $6500 area with a daily close. Despite having sustainable bearish pressure rejecting off the $13800 price area, the price has found strong support to rely on.
The price did maintain a proper channel while progressing lower after the impulsive non-volatile bullish move. Currently, it is being broken above which does indicate a significant impulsive bullish trend in the making. The price is residing above the dynamic level of 20 EMA while pushing above the recent high. Though the daily candle has not closed yet to confirm the breakout but it indicates the pressure of bulls along the way.
According to Fibonacci Expansion, earlier the price rejected off the 61.8 level around $13000 which can also act as strong resistance in the coming days. The price has also completed the C wave as per Ichimoku Price Theory and starting to push higher for D. As per Price Theory V Calculation = B+(B-C), D wave is expected to complete at $21155.
The expected D wave completion price $21155 is higher than the all time high of Bitcoin. However, if the price manages to reach the potential price area, new highs in the Bitcoin can be seen. Hence, as per current situation, the price can meet the height of A to B as expected price length from C to D. If that happens, the price may reach at least $15000.
So, theoritically the price is expected to breach above the recent high and create another all time high above $21000. Certainly in technical perspective, the price may face certain resistance at $13800, $15500, $17900 and $19300 along the way.
In conclusion, Bitcoin pushing higher above $8500 area while breaking above the declining channel indicates upward pressure in the making.