Bearish BTCUSD daily Technical analysis


Bitcoin price is wedged in consolidation but a small bearish channel can be seen on short-term. Here is my BTCUSD daily Technical analysis.

11 January, AtoZForexThe bitcoin prices dropped 11 percent to 805.55 USD at 12:42 GMT. Bitcoin’s price stabilized above $900 on Tuesday, following a period of massive price volatility that led to the cryptocurrency biggest flash crash in two years. Daily bitcoin prices fluctuated between $897.57 and $914.02, much narrower than the triple-digit spread that characterized some of last week’s most volatile sessions.

 

11btcchart

BTCUSD daily Technical analysis

The 100 SMA is above the longer-term 200 SMA so the path of minimum resistance is to the upside. Moreover, the 200 SMA lines surged with the channel support around $915, accumulation to its strength as a floor. Price is trading close to the 100 SMA now and this could also hold as dynamic support. Stochastic is whirling lower from the overbought zone to suggest a pickup in selling pressure. If bears are strong enough, they could push for a break beneath the channel support and the next floor around $765. RSI is treading sideways, barely offering any strong directional clues now. This could mean that further consolidation is in the cards while traders expect bigger market catalysts.

11btcusd BTCUSD Technical chart (click to zoom)

Market events affected bitcoin prices

The Chinese government’s cautions and actions a few days back has still crippled bitcoin trading. Authorities have cautioned about the risks involved in trading bitcoin and reminded exchanges to implement KYC and AML checks on its clients. Still, it’s also worth noting that the massive slide that resulted from liquidation of large positions has stopped. Hence, traders are also on the lookout for additional moves from Chinese officials as a cue to pare more bullish positions.

Think we missed something? Let us know in the comments section below.

    Share Your Opinion, Write a Comment