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Bitcoin (BTC/USD) Nears $43,000: A Technical Analysis

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Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
By Arslan Ali Butt
author
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
on January 17, 2024 | 2 min
Updated on Jan 23, 2024
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  • Bitcoin trades at $42,872.24, with a market cap of $840 billion and a neutral RSI at 46.
  • Key resistance levels at $44,162, $46,749, and $51,611; pivotal support at $36,506, $31,540, and $26,678.
  • Bearish trend below the 50-Day EMA of $43,592; consolidation phase indicates potential for upcoming price movement.

As of January 17, Bitcoin (BTC) is trading at $42,872.24, marking a slight increase of 0.30% in the last 24 hours. Currently holding the top spot on CoinMarketCap with a market capitalization of approximately $840 billion, Bitcoin’s trading volume stands at an impressive $24 billion. The cryptocurrency has a circulating supply of 19.6 million BTC out of a maximum of 21 million.

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BTC/USD Price Chart
BTC/USD Price Chart – Source: Tradingview

Bitcoin Price Prediction: Technical Outlook

Analyzing the 4-hour chart, Bitcoin’s pivot point is at $39,093, suggesting a critical juncture for the digital asset. The immediate resistance levels are set at $44,162, $46,749, and $51,611. These levels are crucial for traders to watch, as a breach could signal a shift in market sentiment. On the support side, Bitcoin finds its immediate cushion at $36,506, followed by subsequent levels at $31,540 and $26,678. These support levels are vital for maintaining the current market structure and preventing further declines.

 

From a technical perspective, the Relative Strength Index (RSI) stands at 46, indicating a neutral market condition. This suggests that Bitcoin is neither overbought nor oversold at the current levels, providing room for potential movement in either direction. The Moving Average Convergence Divergence (MACD) shows a value of 136, with a MACD line at -262. This divergence indicates that while there is potential for upward momentum, the market remains cautious.

 

The 50-Day Exponential Moving Average (EMA) is currently at $43,592, serving as a key indicator for Bitcoin’s short-term trend. This level is particularly significant as it acts as a threshold for determining the overall market trend. Currently, Bitcoin is consolidating in a narrow range, indicating a period of indecision among traders. This consolidation phase is critical as it could precede a significant price movement.

 

In conclusion, the overall trend for Bitcoin appears bearish below the $43,592 mark. However, a break above this level could alter the market’s direction. In the short term, traders should closely monitor these key levels and indicators to gauge potential price movements. The current market conditions suggest a cautious approach, with a keen eye on the aforementioned resistance and support levels.

Stay tuned for more updates at Daily Crypto

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About Arslan Ali Butt
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
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