Bitcoin Price Analysis Jan 8: BTC Targets Fresh Yearly Highs
January 8th, 2019
Bitcoin price corrected lower after trading as high as $4,094 against the US Dollar. BTC/USD remains in an uptrend and it could soon break the $4,094 high and $4,180 resistance.
- Bitcoin price is trading nicely above the $3,830 support and the 50 simple moving average (4-hours).
- BTC/USD is following a major ascending channel with support at $3,830 on the 4-hours chart.
- BTC price may test the $3,875 or $3,830 support before climbing above the $4,094 swing high.
Bitcoin Price Analysis
There was a decent upward move above the $3,900 level in bitcoin price. BTC/USD even traded above the $4,020-4,050 resistance area and climbed to a new 2019 high at $4,094.
The 4-hours chart of BTC/USD indicates that the price formed a high at $4,094 and later started a downside correction. It moved below the $4,050 level and the $4,020 pivot level to start a short term bearish wave.
There was also a break below the 23.6% Fib retracement level of the last upward move from the $3,734 low to $4,094 high. However, the price remains well supported above the $3,830 and $3,910 levels in the near term.
Initial support is near the $3,910 level and the 50% Fib retracement level of the last upward move from the $3,734 low to $4,094 high. Below $3,910, the price may test the $3,830 support and the 50 simple moving average (4-hours).
More importantly, there is a major ascending channel in place with support at $3,830 on the same chart. Below the channel support, there is a significant bullish trend line at $3,780.
Should there be a downside break below $3,780, the price may continue to decline towards the $3,700 and $3,600 support levels. On the upside, initial resistance is near the $4,090 level, above which the price is likely to climb to a new 2019 high. The next major resistance is at $4,180, followed by $4,220.
Overall, bitcoin is trading with a positive bias as long as the price is above the $3,830 and $3,780 support levels. BTC buyers may soon target $4,100, $4,180 or even $4,220.