The worldwide crypto market has increased another $30 billion today, which has helped raise Bitcoin out of the other day’s bearish descending triangle and onwards towards a brand-new all-time high at $28,800.
Regardless of the boost in investment getting in the market over the last 24 hours, the overall trading volume has in fact decreased by $10 billion.
This, coupled with the truth that there is a considerable RSI divergence on the Bitcoin rate chart right now, recommends that the present bullish pattern is weakening and that the leading cryptocurrency may remedy soon.
January has usually been a bearish time for Bitcoin and the broader crypto market, especially after the late 2017 rally. It’s plausible that the existing rally could supply an effort to pump up purchasing pressure, exceeding $30K, so that larger financiers can offload their bags on to retail investors just after we enter the brand-new year.
BTC Price Levels to Watch in the Short-term
On the following hourly BTC/USD chart, we can see that the breakout level we talked about in the last analysis, around $27,050 (white dashed lines), was hit when bitcoin declined the descending triangle pattern.
This resistance managed to keep rates reduced for 3 hours till bullish traders finally broke through and drove Bitcoin back to $28,000.
Rates then began to stagnate around the $28,400 level before tanking to $27,300 during the start of the European trading session today (08:00 -09:00 UTC).
Ever since, bullish momentum got simply as the U.S. trading session got underway, trying to drive the leading crypto over $29K, as of composing these lines.
There is, however, a strong bearish RSI divergence on the 4-hour and per hour chart (white lines) that highlights the present uptrend might be running out of steam. RSI divergences are normally reliable indicators that a pattern will reverse.
If this plays out, these primary assistance locations should help get some responses once bears take back control of the possession.
( 1) $28,400 – – Top green bar and the previous all-time high.
( 2) $27,850 – – next green bar below the top and essential S/R level.
( 3) $27,300 – – 3rd green bar.
( 4) $26,750 – – bottom green bar.
( 5) $26,300 – – yellow bar.
Overall market capital: $773 billion
Bitcoin market capital: $536 billion
Bitcoin supremacy: 69.3%
* Data by Coingecko.