Technical analysis update: Bitcoin (21st January 2022)

Bitcoin formed a new low at 37 683.90 USD, shy just 183.90 USD of our latest price target. We continue to be bearish as technical factors suggest more trouble ahead for BTCUSD. We expect weakness in the general stock market to drag lower prices of cryptocurrencies with it. Additionally, we think rotation out of the cryptocurrency sector into the precious metals sector will take place. Our latest medium-term price target was changed to short-term price target which stands at 37 500 USD. Our new medium-term price target is 35 000 USD.

Illustration 1.01

We presented this chart formation on 6th January 2022. We noted that once the neckline was penetrated to the downside then the downtrend would unravel below it. Since then price dropped more than 13%.

Technical analysis - daily time frame
RSI reached an oversold condition which signals caution. However, no divergence between previous bearish crossover and the current one is present. MACD remains in the bearish territory and points to the downside. Stochastic is also bearish. DM+ and DM- show that same condition with ADX suggesting that the current trend is extremely strong. Overall, the daily time frame is bearish.

Illustration 1.02

Picture above shows the monthly chart of Bitcoin. It also shows bearish developments in RSI, MACD and Stochastic taking place. This is particularly menacing as up until now only the daily and the weekly time frames were completely bearish. Now the monthly time frame joins them.

Technical analysis - weekly time frame
RSI, MACD and Stochastic are all bearish. Same applies to DM+ and DM-. ADX grows which started to increase which suggests that the bearish trend of higher degree is gaining strength. Moving averages are bearish. Overall, the weekly time frame is bearish.

Support and resistance

Please feel free to express your own ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.

أغلقت الصفقة: تم الوصول للهدف:

Short-term price target of 37 500 USD has been reached. We would like to change medium-term price target of 35 000 USD to short-term.

أغلقت الصفقة: تم الوصول للهدف:

Short-term price target of 35 000 USD has been reached.