Bitcoin Price Evolution Analysis 12.01.2021
by CSM TRADER
Nº 474
BTC price U$ 57.000.
Price USD/BRL R$ 5.62.
Price EUR/BRL R$ 6.37.
Price Gold 1g R$ 323.39
Good morning to all readers.
India continues its flirtation with Bitcoin and other cryptocurrencies. The winter sessions of the Indian Parliament have begun and, it seems, BTC will not be the star of the show. In fact, the lower house of parliament asked the finance minister if there was a proposal to recognize Bitcoin as a currency. The answer was a resounding "no."
All this information came in the form of a memo. In that document, the Finance Minister also answered "whether the Government has allowed cryptocurrency exchanges as a legally permitted entity in India."
The headlines from the recent session with the Finance Minister are these two; no proposal to recognize Bitcoin as a currency, and the government does not collect Bitcoin transaction data. Fortunately for them, the blockchain is an immutable ledger. They don't need to collect anything, it's all there.
Still, India's confusion about cryptocurrencies is the main topic here. They don't seem to know what to do with cryptocurrencies.
The price of Bitcoin follows an uptrend above the price area of $56,800 and just above the 100 EMA (H1).
The price of Bitcoin in past sessions has continued with positive moves above the $57,500 and $58,500 price areas, and has even tested the $59,224 price area, but has failed to continue positive moves above $59,500 and $60,000.
After having failed in the positive developments above $59,500, the Bitcoin price returned with its negative corrections downwards from the price areas of $59,000, $58,000, $57,000 and testing the $56,520 price area, where it continues in the consolidations between the $56,750 and $57,470 price areas and right on top of the 100 EMA (H1).
Now at the time of writing the Bitcoin price follows in the price area of U$57,009, and struggles to stay above the EMA 100 (H1).
The Bitcoin price needs to stay above the 100 (H1) EMA and come back with its positive developments above the 50, 20 and 5 EMAs, which are all together.
It will take for the Bitcoin price a strong positive advance above the $57,500 and $58,220 price areas to rise above the Ichimoku Cloud for continued positive developments to follow above $59,000 again.
If the Bitcoin price opens below the EMA 100 (H1) the negative corrections could continue below the price area of $56,500 and $56,000, and could still go for a test at the bottom formed at the $55,900 price area.
Only with the continuity of positive developments above the Ichimoku Cloud will the Bitcoin price get out of a risk area of negative correction turns below the 100 EMA (H1) and the $56,500.
A Journal close was made above the U$57,050 price area.
A close above the $57,500 price area would be important for today.
Buyers remain in control of the situation and are trying to keep the Bitcoin price above the 100 EMA (H1) or even above U$56,500.
It will be of utmost importance for buyers to return positive developments above the U$57,500 price area in the short term.
If buyers fail sellers will take control of the situation where they will create the downside below $56,500 and $56,000.
Major areas of Resistance - $57,500, $58,000 and $58,500.
Main Areas of Support - $56,500, $56,120 and $55,780.
H4 chart :
Bitcoin price follows above the EMAs 20 and 50 and above the Ichimoku Cloud, but follows below the EMAs 5, 100 and 200.
The Bitcoin price needs to stay above the Ichimoku Cloud and still head above the 100 EMA where the intermediate LTB is.
If the Bitcoin price does not achieve these advances for the next few sessions above the EMA 100, negative corrections will enter the Ichimoku Cloud where the chances of the Bitcoin price going below $56,000 could occur.
Only above the EMA 100 and 200 for the Bitcoin price to get out of a risk area of the negative corrections' turns; and out of risk area for corrections below the Ichimoku Cloud, where it already shows correction. (arrow)
Follow the buyers in attempts to keep the Bitcoin price above the $56,700 price area and above the Ichimoku Cloud.
The chart on H4 will follow all week to have a parameter of the Bitcoin Price Evolution. Only some adjustments will be made.
Resistances: U$ 57.461 // U$ 58.130 // U$ 58.783 // U$ 59.348.
Supports: U$ 56,704 // U$ 56,035 // U$ 55,426 // U$ 54,876.
https://www.tradingview.com/x/z3ZTB78l/
H1 chart :
Bitcoin price is tracking above the 100 EMA, however it is tracking below the 200, 5 and 20 EMAs, where all are right together.
The Bitcoin price needs to stay above the EMA 100 and come back with positive developments above the EMAs 200, 5 and 20 taking advantage that these are together.
It will be important for the Bitcoin price to stay above the EMA 100 so as not to start with the negative corrections below the EMA 100 and head below $56,500 and $56,000, where a search for the bottom of $55,900 could happen, and still extend below $55,500.
It follows buyers in attempts to exit with the Bitcoin price above the Ichimoku Cloud where they need to move above U$58,000 and U$58,500, to get out of an area of risk of sellers getting into control of the situation and creating the downsides to below U$56,000.
Resistances: U$57,217 // U$57,536 // U$57,913 // U$58,341.
Supports: U$ 56,789 // U$ 56,462 // U$ 56,158 // U$ 55,795.
https://www.tradingview.com/x/eojlLYwS/
Dominance: 41.96%.
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Nº 474
