Bitcoin (BTC) Price Analysis: Heightened Volatility Rattles Bulls – 4 January 2024
Bitcoin (BTC/USD) encountered additional volatility early in the Asian session as the pair awaited technical guidance following a precipitous decline to the 40625.68 area, representing a test of the 100-bar simple moving average on 12-hourly bars. Stops were elected below the 43719, 43037, 42356, 41386, and 40963 areas during the depreciation after BTC/USD peaked around the 45925.82 area, a multi-month high dating to May 2022. Large Stops were also elected below the 44026, 43986, 43528, 42788, 42047, 41143, and 41131 areas, downside price objectives linked to recent selling pressure around the 45925 and 45519 levels. A recovery to the 42847 area after establishing multi-session lows was a test of the 42788 and 42815 levels, significant technical levels linked to interday selling pressure. Above the market, upside price objectives remain the 46105, 46487, and 49161 levels.
Bulls continue to eye the 48647.72 area, representing the 61.8% retracement of the depreciating range from the all-time high of 69,000 to 15460. Following the new relative high, areas of technical support and potential buying pressure include the 39705, 38735, 37893, and 35857 levels. Traders are observing that the 50-bar MA (4-hourly) is bullishly indicating above the 100-bar MA (4-hourly) and above the 200-bar MA (4-hourly). Also, the 50-bar MA (hourly) is bullishly indicating above the 100-bar MA (hourly) and above the 200-bar MA (hourly).
Price activity is nearest the 200-bar MA (4-hourly) at 42295.51 and the 200-bar MA (Hourly) 43112.89.
Technical Support is expected around 37392.45/ 36720.55/ 35633.00 with Stops expected below.
Technical Resistance is expected around 46487.10/ 47108.16/ 48240.00 with Stops expected above.
On 4-Hourly chart, SlowK is Bearishly below SlowD while MACD is Bearishly below MACDAverage.
On 60-minute chart, SlowK is Bearishly below SlowD while MACD is Bearishly below MACDAverage.
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Source: https://cryptodaily.co.uk/2024/01/bitcoin-btc-price-analysis-heightened-volatility-rattles-bulls-4-january-2024