- BTC price formed a double bottom pattern and have succeeded to breakout of neckline resistance at $18,385
- Bitcoin crypto price had sustained above 50 day EMA but it is struggling to breakout of the 200 day EMA hurdle
- BTC price is showing signs of long term base formation near $20,000
Bitcoin price is trading with mild bullish cues and bulls are attempting to break out of the 200 day EMA. According to Coingalss, $21,000 strike price holds a Call open interest at 15.27K BTC and Put at 3.97K BTC which clearly indicates the strength of buyers. Currently, The pair of BTC/USD is trading at $20,821.76 with an intraday gains of 0.71% and the 24-hour volume to market cap ratio at 0.0745
BTC price turned bullish and formed three white shoulder pattern
On a daily time frame, BTC price had shown a surprising rally of 3000 points in a short span of time and formed a double bottom bullish reversal pattern. From the past couple of months BTC price got stuck in the narrow range between $15,500 to $18,000 and experts have turned highly bearish and are expecting more downside in the BTC prices but market chooses the opposite direction and shot up 32% approx from the lows.
BTC price had succeeded to reclaim the 50 day EMA (yellow)which had reversed the short term trend in the favor of bulls but unfortunately the positional trend is still in the bear grip as prices struggled at the 200 day EMA(green). However, In the coming weeks, If BTC bulls will be able to break out of the 200 day EMA and $21,500 hurdle level we may see the next phase of rally in the short span of time which can take BTC to the $25,000 level
According to technical analysis, BTC prices are expected to consolidate in the range between $18,500 to $25,000 in the coming months and if any minor correction triggers from the higher level, it will provide an opportunity for investors and traders to build fresh long positions. On the lower side $18,000 and $16,000 will act as a demand zone for investors. The MACD had generated positive crossover but the curve is sloping sideways denotes prices are lacking the momentum near the supply zone and the RSI at 78 denotes the overbought level.
Summary
Bitcoin prices had shot up 30% from the lows and formed a three white shoulder bullish pattern which indicates the buyers dominance on the lower levels. The technical analysis suggests that BTC price may enter into the short term consolidation but eventually it will break out of upside. Therefore, traders may look for buying opportunities for the target of $25,000 and above by keeping $18,500 as SL. However if prices slipped below $18,500 bears may try to test $16,000 again.
Technical levels
Resistance levels : $21,500 and $25,100
Support levels : $18,000 and $16,000
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/01/19/bitcoin-price-prediction-will-btc-price-reach-25000-mark-before-the-first-quarter-of-2023-ends/