Viet Reader.


Premier Newspaper for Vietnamese Worldwide

Bitcoin Technical Analysis January 27th

Bitcoin (BTC) has recovered to $38,919 since falling below this zone on Jan. 21. The price has since retreated somewhat but may have completed a short-term corrective structure.

Recovery is in progress

Bitcoin has recovered and is rising after hitting a local low of $32,917 on Jan. 24. The upward move continued until BTC hit a high of $38,919 on Jan. 26. This was short-lived as BTC created a long upper wick and fell on the same day.

It failed to move above the $38,200 resistance, which is both the 0.5 Fib retracement level and the horizontal resistance area.

BTC needs to retrace this zone to create a short-term bullish structure.

BTC/USDT 2 hour chart | Source: TradingView

long-term movement

The daily chart shows that the price created a long upper wick on January 26th, which is considered a sign of selling pressure.

However, it is currently approaching the lower Longwick territory created on January 24 to provide support.

BTC/USDT daily chart | Source: TradingView

Additionally, looking at the two-hour chart, BTC is trading within the 0.5-0.618 Fib retracement support area between $35,200 and $35,900.

This is the most common Fib area that offers support after a sharp decline so it could start a reversal, which could make BTC make a higher low in the process.

BTC/USDT 2 hour chart | Source: TradingView

count waves

Long term wave count shows that BTC has completed a major ABC correction contained within an ascending parallel channel.

In it, waves A and C have an exact ratio of 1:1, indicating that BTC bottomed on Jan. 24.

BTC/USDT daily chart | Source: TradingView

If true, the short-term wave count shows that BTC has completed sub-waves one and two (red). In it, the entire movement since January 26th has taken the form of an irregular flat (yellow) corrective structure.

The component waves A and C in this structure have a ratio of 1:1.61, which is the second most common in such structures.

Hourly BTC/USDT chart | Source: TradingView

You can see the bitcoin price here.

Join Bitcoin Magazine Telegram to follow news and comment on this article:

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.


According to beincrypto

About author
You should write because you love the shape of stories and sentences and the creation of different words on a page.
View all posts
More on this story