What can we see at 4h chart?
Looking at this chart we can see a nice bounce. Bitcoin has broken the trendline at the local level. We can also see a long wick at the bottom. Such a long wick with such a significant volumes can usually signify a bottom. As of now, it is absolutely crucial for us not to create a lower lows, which means that we should not go below 39 633 dollars. If we keep these values, there is a huge probability that Bitcoin can attack 45 429 – 46 493 USD levels in the coming days.
However, I am not very hopeful when it comes to bigger movements. If Bitcoin shoots above these levels, I will be closing my longs and waiting for the reaction. This area was our support for the whole December and right now serves as a strong resistance. I do not believe that Bitcoin will be so strong as to go above it in one go.
What does the overall trend say?
The number one priority now is to hold 40 000 dollars mark. I believe that the coming days will show that we can hold this level. Yet, I am not really sure if we can hold this level also in coming months. Looking at daily chart, we are still below the trendline and we have not seen any significant pullback. We have been in a downward trend for more than 2 months.
Bitcoin has been falling a lot, but the selling pressures seem to be getting weaker. The biggest sells of Bitcoin in December were probably coming from China, but this has already stopped. The support of 40 000 dollars is very strong and I reckon we can hold it for a bit longer. In the coming weeks I expect the following, as shown at the chart. The priority is still to hold the 40 000 dollars level.