Read full article at CryptoPotato.

Similar to the consolidation in May-July 2021, the market is forming a significant supply/demand level in the $40K-$42K range. Aside from the short-term price trend, the mentioned area will be a significant support (or resistance) for long-term price actions.

Technical Analysis

Many analysts believe the $40K-$42K zone resembles the $30K-$32K range in May-July. Since December 5th, the $40K-$42K zone acted as good support.

But, considering the low demand in the spot market, bitcoin can see lower prices if this strong support fails (bitcoin closes a daily candle below it). The Fibonacci levels are shown in a daily time frame. The 0.382 Fibonacci level and the red zone that covered each other make a strong resistance of $50K-$51.5K.

photo_2022-01-14_20-32-06
Source: TradingView

It seems that there will be some selling pressure for this level if bitcoin touches this resistance.

Short-Term Analysis

Despite a positive move in price during last week, bitcoin could not break above $44.5K. As the chart shows, there are multiple resistance levels on the way up to $50K. BTC was rejected by several of them, which crossed each other and made $44.5K-$45K a powerful barrier.

image_2022-01-14_15-02-34
Source: TradingView

In a 4-hour time frame, bitcoin broke out the bearish trend line (orange line). It seems that the pullback has been completed, and the cryptocurrency can make another attempt to break the $44.5K-45K resistance in the coming day.

Order Book Analysis

Bitcoin Heatmap

Considering the heat map for open limit orders, it is clear that FTX played an influential role in recent price actions since the market crashed to 40K (Dec 2021). There are many examples where the price reacted to this exchange’s buy/sell walls. Therefore, it might be wise to monitor this order book for near-future price actions.

The Technical Analysis is prepared by N_E_D_A .

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

Categories:

Tags:

Comments are closed

Translate

Our Other Projects

EdgyBranding.com - Premium Domain Names.

Notezi.com - Social Network

ParisArtwork.org - Mid-century Paris NFTs, tokenized on the WAX blockchain.

NewYorkArtwork.org - Mid-century New York NFTs, tokenized on the Ethereum blockchain and offered on Rarible.

ClassicAutomobile.org - Classic Automobile News.