Bitcoin Price Analysis Jan.24: Attempting To Break Up With No Volume

Not much had changed since our previous BTC price analysis from yesterday: Bitcoin is still consolidating in the tight range of $3500 to $3600.

This move was followed by a low amount of volume, and it looks like that Bitcoin is seeking to find its next direction.

Looking at the 1-day & 4-hour charts

• Bitcoin is attempting to break out the descending trend-line (marked in orange on the 4-hour chart). However, a breakout should also include the $3600 resistance area and a higher amount of volume.
• In case of breaking up the $3600, along with the 50-days moving average line (4-hour chart), the next targets might be the daily chart’s 50 days moving average line (marked in white, currently around $3650), next targets are the $3700 and $3800 areas.
• From the bear side, the closest support is around $3530 – the ascending trendline marked in orange, followed by the significant support area at the $3480 – $3500. Below this level, lies the $3400 (weak support) and $3300 support level. This is before retesting the 2018 low at $3120.
• The daily chart’s RSI: Currently hovering healthy above the supporting line at 43. The 4-hour chart’s RSI is getting close to the overbought area.
• As mentioned above, the trading volume is low while BTC seeks to find its next destination.
• BitFinex’s open short positions increased to 23.7K BTC of open positions, yet not a significant amount.

BTC/USD BitStamp 4-Hour chart

BTC/USD BitStamp 1-Day chart