Bitcoin’s price follows two ascending support lines: one short term, and one medium term.
There is a resistance zone at $ 39,463 and support at $ 37,143.
BTC trades within a short-term ascending parallel channel.
On January 14, Bitcoin Victory hit a high of $ 40,112. However, it suffered rejection immediately afterwards and has been in decline ever since.
Although the long term trend is likely bearish, the short term trend remains bullish as long as Bitcoin is trading above $ 36,717
Hidden divergences lead to sharp rise in Bitcoin
BTC has been rising from its local January 11 low at $ 30,402. It created a long lower wick just above the 0.382 fibonacci retracement level of the latest bullish move to date.
On January 14, BTC climbed to $ 40,112, before suffering a rejection.
The technical indicators for the day are bearish. The RSI has generated considerable hidden bullish divergence , but this has already caused price to rise earlier.
The MACD is declining and the stochastic oscillator has formed a bearish cross. These are two strong signs of a downward trend
The six-hour chart shows that BTC was rejected at the 0.786 fibonacci retracement level, which previously served as support. Thus, the area of $ 39,463 is now confirmed as resistance.
Despite this rejection, technical indicators remain bullish, and an ascending support line currently sits at $ 34,000. This means that the short term trend may still be bullish.
The two-hour chart shows that BTC is following another upward, shorter-term support line. This line currently sits just below the support at $ 37,143. This corresponds to the fibonacci level 0.382 of the last bullish movement to date.
As long as BTC is trading above this area / support line, the short-term trend is still considered upward.
