Bitcoin Price Technical Analysis for 22/01/2016 – Bulls Revving Up?

Bitcoin Price Key Highlights

  • Bitcoin price appears to be starting a new trend on its short-term time frames, as an ascending trend line can be drawn to connect the recent lows of price action.
  • Technical indicators are also hinting at a start of a short-term uptrend, with the moving averages looking prime for an upward crossover.
  • Using the Fibonacci retracement tool on the latest swing high and low reveals the potential support zones.

Bitcoin price could be starting a new uptrend but it needs to find support at the nearby Fib levels before confirming this climb.

Short-Term Support Areas

As you can see from the chart below, the 50%-61.8% Fibonacci retracement levels are closest in line to the rising trend line around the $390-400 bitcoin price levels. This is also near the moving averages, which tend to act as dynamic inflection points.

The moving averages are edging closer together, with the 100 SMA looking ready to make an upward crossover to indicate that the path of least resistance is to the upside. In that case, bitcoin price could bounce up to the latest highs around $420 or break above that.

bitcoin price, bitcoin trading, bitcoin technical analysisRead more ... source: TheBitcoinNews