Downside correction or price growth?

Bitcoin's Analysis


1/13/20230 min read

Yesterday, after forming a range zone below the $18,500 resistance, Bitcoin broke this resistance with more support from buyers. Higher ceilings and floors are now confirmed on the 4-hour timeframe, and we can consider a medium-term bullish channel for Bitcoin . The price of $19,000 is at the ceiling of this ascending channel , and Bitcoin has shown a negative reaction to this area. The strong resistance has been broken in the range of $18,390 to $18,530. If the price stabilizes above this range, we can consider the next target at $19,540. Note that Bitcoin has broken multiple resistances without a pullback. On the one hand, the willingness of sellers can increase, and on the other hand, there is a possibility of price return and pullback to its support levels. Note that more than 60% of the last strong bearish candle on the weekly time frame is covered by buying pressure. But for full coverage, the price needs to grow further to the price of 20,030 dollars. Therefore, we consider an important resistance in the range of $19,120 - $20,030. Bitcoin has reached both the channel ceiling resistance and this static range. So if a reaction is seen, and signs of a reversal appear on the chart, Bitcoin can correct towards its supports. If the bitcoin price fails to clear the $19,000 resistance, it could start a downside correction. Immediate support on the downside is near the $18,650 level.

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