Looking at the chart patterns, there are certain signals that stand out, allowing analysts to make reasonable assumptions about the price of Bitcoin for the near future, including the observations by the crypto analytics team TradingShot using the TradingView platform on January 20. The analysts first drew attention to the application of the Adam and Eve (A&E) pattern (a bullish double bottom pattern with twin bottoms at around the same price) that started forming since the FTX implosion in November and which was accurate with its target, even though it “went under the radar.” According to the analysis, Bitcoin is currently trading sideways and moving to test the four-hour moving average on 50 data points (4H MA50) for the first time since January 6. Furthermore, “a break can seek the 4H MA200 as its last support.”
What to look for?
On the basis of these movements, confirmations can be looked for “that will either lead to that correction or the extension of the rally,” or more precisely, the moving average convergence divergence (MACD) and relative strength index (RSI) indicators, as follows: As a reminder, a bullish crossover happens when the MACD line crosses above the signal line presenting an entry point or buy opportunity for traders, as opposed to the bearish crossover that occurs when the MACD line crosses below the signal line indicating a sell opportunity or an exit point.
Bitcoin price analysis
Meanwhile, the flagship decentralized finance (DeFi) asset was at press time changing hands at the price of $21,104, up 1.79% across the previous 24 hours, as well as increasing 11.83% over the past week, adding up to the cumulative gains of 25.14% on its monthly chart. In the meantime, the crypto community at CoinMarketCap is bearish about BTC for the end of January, currently projecting it would be trading at the average price of $19.390 on January 31, which represents a drop of 8.09% from its current price. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
