Bitcoin (BTC) Tests Multi-Week Support

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Bitcoin (BTC) Chart and Analysis

• Bitcoin (BTC) sitting on support.

 

A fairly lackluster Christmas and New Year’s trade for most cryptocurrency traders with heavyweights Bitcoin and Ethereum both below pre-Christmas levels. While Ethereum has bounced back after slumping into oversold territory, Bitcoin remains around $1k above an important area of support. The short-term outlook for Ethereum remains mixed with support reasonably solid around $3.5k, while a cluster of old highs and lows between $4,032 and $4,176 look set to act as firm resistance.

ETHEREUM (ETH/USDT) DAILY PRICE CHART – JANUARY 4, 2022

Bitcoin’s choppy sideways pattern looks set to continue although support is coming under pressure. This one-month range between $42.4k and $52.1k now remains key to the next move, with a confirmed break of support opening the way to a cluster of prior lows just above $40k, while a break of resistance opens the way back to just under $53k.

BITCOIN (BTC/USDT) DAILY PRICE CHART – JANUARY 4, 2022

All Charts via Trading View.

What is your view on Bitcoin – bullish or bearish?

 

Jan 4, 2022 |  Nick Cawley, Strategist  |  DailyFX