Technical Analysis for BTCUSD for 4th January 2023
Bitcoin Moving Sideways as Volatility Drops, Buy Trigger at $17k
Past Performance of BTC
Bitcoin's volatility continues to taper, per the formation in the daily chart. This development impacts trading activity, worsening sentiment, especially when bulls fail to convince market participants. Technically, the path of least resistance is southwards as bulls hang on, oscillating above primary support at $16.5k. It is crucial for buyers to close above $17k and reaffirm the confidence buyers had in prices in late December 2022. Briefly, prices spiked, but there was no follow-through.
Bitcoin Technical Analysis
BTC prices are inside a tight trade range, moving horizontally with decreasing volumes. From the daily chart, buyers have support at $16.5k. Meanwhile, there must be a convincing close above $17k, or December 20 highs, for confirmation of the uptrend, possibly pumping prices. Since gains of early this week are yet to be confirmed, conservative traders can wait for trend definition. Any surge above $17k may spark demand. Conversely, losses below $16.5k will dampen sentiment, forcing BTC lower, aligning with sellers of early November 2022.
What to Expect from BTC
Prices are moving horizontally with no clear direction. Overall, sellers are in charge, but this can change if there are gains above the current consolidation towards $17k and even $18.5k.
Resistance level to watch: $17k
Support level to watch: $16.5k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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