Cryptocurrencies took a ride on the global risk assets’ relief rally overnight., together with a slew of positive news. ApeCoin surged 10% after Tesla’s CEO, Elon Musk, changed his Twitter profile photo to an image featuring a collection of a Bored Ape Yacht Club NFT.
Moreover, the French stock market’s regulator, AMF, approved Binance as a registered operator to provide its crypto exchange services in France, which is the first EU country to allow this form of digital asset trading. Bitcoin jumped more than 4%, and ethereum rose 5% during the same timeframe.
From a technical perspective, bitcoin is on course for a potential near-term bottom reversal, heading toward the January high.
Bitcoin – Daily chart
A potential further rebounding at the ascending trendline.
Bitcoin rebounded at the bottom band of the ascending channel, the upside momentum is most likely to continue with a bullish breakout on the 20-day moving average, pricing at 39,800, and heading to the next potential long target at the 50-day moving average at 41,560.
Key technical elements:
- A bullish crossover from the oversold territory in Stochastic, suggests the downtrend may have bottomed out.
- A potential golden cross forms ahead in MACD, suggesting the bullish momentum is mounting.
Key price levels:
Supports: 37,500 (the near-term support at yesterday’s low), 32,945 (pivot support to divide uptrend and downtrend).
Resistances: 41,560 (the key intraday resistance, also the Fibonacci retracement of 23.60% connecting from the high on 10 November 2021 to the low on 24 January), 46, 645 (Fib. 38.20%), 50, 886 (Fib. 50.00%, also the upper band of the ascending channel).
