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Analysis

Chart of the day – a potential further rebounding of bitcoin

bitcoin rebounds

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.

(Click to see the enlarged chart)

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).


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