Bitcoin: volatility will continue
Markets were quite surprised by the latest strong US jobs data posted on Friday. It was interesting to watch the BTC chart during this period, because not only did traditional markets react in a negative manner, but also BTC had a strong drop toward the 93K levels. That is sort of confirmation that the BTC is officially part of the mainstream markets, and such volatility might be expected also in the future. However, trading week started in a pretty negative manner. The strength was weakening, as well as daily trading volumes. Investors are currently silenced, in expectation of a new US Administration on January 20th.
The lowest level reached during the week was $91,4K, from which BTC rebounded. During the whole week, there has been higher volatility between levels of 93K and 95K. The 95K resistance line was tested on several occasions, but there has not been strength for higher grounds. The RSI currently moves around the level of 45, indicating that the market might easily drop toward the oversold market side. The MA50 is slowly starting its convergence toward the MA200, however, it is too early to speak about the potential cross.
Current charts are showing a lower BTCs strength. In this sense, there might be some probability that the support line at 90K might be shortly tested for one more time. Still, the majority of trades occur around the 93K level, in which sense, this trend might continue for another week. The level of 95K holds currently as a strong resistance line. On a positive side is that on a daily chart Friday's trading season was in green, after the market tested the lowest level from Thursday. In this sense, the lowest level “was rejected” as it is usually said by technical analysts. This provides some positive sentiment, however, the trading volumes are currently quite weak, in which sense, a potential for higher grounds might be postponed.
The lowest level reached during the week was $91,4K, from which BTC rebounded. During the whole week, there has been higher volatility between levels of 93K and 95K. The 95K resistance line was tested on several occasions, but there has not been strength for higher grounds. The RSI currently moves around the level of 45, indicating that the market might easily drop toward the oversold market side. The MA50 is slowly starting its convergence toward the MA200, however, it is too early to speak about the potential cross.
Current charts are showing a lower BTCs strength. In this sense, there might be some probability that the support line at 90K might be shortly tested for one more time. Still, the majority of trades occur around the 93K level, in which sense, this trend might continue for another week. The level of 95K holds currently as a strong resistance line. On a positive side is that on a daily chart Friday's trading season was in green, after the market tested the lowest level from Thursday. In this sense, the lowest level “was rejected” as it is usually said by technical analysts. This provides some positive sentiment, however, the trading volumes are currently quite weak, in which sense, a potential for higher grounds might be postponed.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.