Hi friends, hope you are well and welcome to the new update on BITCOIN(BTC)
Reached the low of Jan 2021:
The price action of Bitcoin dropped at $28800 dollar, which was very close to the low of the first week of January 20201, when the price action dropped from $33600 to $28130 in a single day. However, the long-term strong support is at $30K because we have more touchpoints at this level.
A parallel channel formation:
The price action of the leading cryptocurrency has formed a parallel channel between $39500 to $31000. So far we don't have even a single closing below $31K and we have more touchpoints at the resistance of $39500 and less touchpoints at the support of $31K. The more we will test support or resistance the more there will be chances to break out or breakdown of support or resistance and so far the testing of resistance is more than the support, moreover, the volume profile of the complete priceline of the king of all cryptocurrencies is moving within this channel is showing less interest of the traders even after half of the channel, and to the upside, we have a strong interest of the traders even above the resistance of $39500.
The price action hits weekly 50 SMA:
Now if we take a look at the weekly time frame chart, then there is a big event-triggered, and that is, the price action has reached the 50 simple moving average on the weekly time frame chart. Before this, it has happened three times in the history of Bitcoin. First in 2014, then in 2018, and again in 2019, and every time the price action has been bounced from the 50 simple moving average. Therefore this time again we can expect another bounce from this simple moving average support level.
The price action of the BTC has reached the very strong support of fifty simple moving average on the weekly time frame chart. It has been always getting bounced from this support. Therefore we can expect another bullish bounce time again. However, to determine whether after this bounce the pricelie will start a short-term or a long-term rally, Bitcoin will need to break out some key level resistances and show bullish divergences on the midterm charts.
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