May 28, 2024

Technical model shows Bitcoin (BTC) growth in January to $ 8500

Technical model shows Bitcoin (BTC) growth in January to $ 8500

Since November 20, Bitcoin (BTC) has been consolidating between the levels of $7000-7500, with periodic rises to $7800 and drops to$ 6,500 Despite the relatively low figures for the last month, the growth prospect of BTC remains, as many analysts say.

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Bitcoin's daily chart showed that severaldays ago, BTC entered a rectangular base, moving ever since between two trend lines. As expected, the model is accompanied by a tendency to decrease in volume with moderate peaks (when the price approaches the boundaries of the model).

Technical model shows Bitcoin (BTC) growth in January to $ 8500

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BTC seems to be testing the Point of Control lineon the Volume Volume indicator, and it seems ready to go up to the next node with a large volume, although at the same time a downward movement can occur. Fortunately, rectangular bottoms burst upwards in almost 60% of cases, making price cuts less likely.

In addition, a 50-day moving average,It seems to be going down following the poor performance of recent BTC price movements. Despite being above the price line, which is a typical sign of a bear market, Bitcoin has the ability to move up and cross the moving average in a more typical bullish scenario.

December 23, the price of bitcoin almost exceeded the lineEMA, and since they converge, Bitcoin can rise above the average return level. The next important resistance level will undoubtedly be on the Fibonacci retracement line of 23.6%, at around $ 7450. In addition, Bitcoin volatility is at its lowest level since September, which reduces the likelihood of significant price fluctuations in the short term.

Technical model shows Bitcoin (BTC) growth in January to $ 8500

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Bitcoin spent most of 2018 highermarks at $ 6,500, and then in mid-December dropped to $ 3,000. The following months were spent on consolidation between $ 3300 and $ 4000, then there was a slow recovery to $ 13 800. If historical data can be considered an indicator, Bitcoin will probably slowly rise to higher levels in 2020.

A more likely scenario, taking into account indicators and past results, is that BTC rises above the model boundary to $ 8500.

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