Jump to content

Bitcoin holds steady around $43,000 after relatively calm weekend

Recommended Posts

Bitcoin holds steady around $43,000 after relatively calm weekend

investing-new.pngCryptocurrencyJan 17, 2022 
Bitcoin holds steady around $43,000 after relatively calm weekend© Reuters.

By Samuel Indyk

Investing.com – The price of Bitcoin remained relatively steady on Monday morning after a calm weekend that saw the world’s largest cryptocurrency hover around $43,000.

Bitcoin suffered some hefty losses at the start of the year, briefly dropping below $40,000 last week as the prospect of more aggressive tightening from the Federal Reserve and other central banks weighed on riskier assets.

The recent decline in Bitcoin saw a ‘death cross’ chart pattern formed where the 50-day moving average moved below the 200-day moving average. Typically, when this occurs it signals a bearish trend for the asset in question.

The last time a ‘death cross’ was observed in Bitcoin, the price dropped to its cycle low just four days after and remained subdued for around a month before starting to rise.

“Bitcoin's failure to cross $45,000 is a sign of its inherent weakness,” BitBull Capital CEO Joe DiPasquale told CoinDesk. “When Bitcoin experiences a sharp drop, investors and traders are looking for aggressive buying to confirm a bottom and reversal; however we haven't seen much of that since Bitcoin dropped below $40,000 briefly.”

Social Media

According to Cointrendz data, Bitcoin ($BTC) was the most mentioned cryptocurrency on Twitter during the last 24 hours with 6,632 tweets.  Ethereum ($ETH) was the second most mentioned cryptocurrency with 4,067 tweets and Cardano ($ADA) third with 3,315 tweets.

Technical view

On the daily chart, a descending trendline is visible from the record high seen in November. A move above $44,500 would see Bitcoin trade back above the trendline.

The next level of resistance to the upside would be the $45,000 level before an approach to the 50-day moving average ($47,700) and the 200-day moving average ($48,550).

To the downside, the $40,000 level will likely act as major support before the 10th January low at $39,700.

At 13:13GMT, the price of Bitcoin was down 1.0% in the last 24 hours at $42,578.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 30/01/23 17:29
  • Posts

    • @MongiIG How long does it take to reply to a simple question?
    • Look Ahead to 31/1/23: Big data from the US, China, Japan; PFE, XOM, AMD earnings Ahead of the Fed meeting and the key US jobs report, investors get set to digest retail sales numbers from Germany and Japan. Plus, look out for consumer-related data from China, France, and the US. Earnings see Pfizer (PFE), Exxon Mobil (XOM) and Advanced Micro Devices (AMD) hand in their Q4 report cards.   Angeline Ong | Presenter, Analyst and Content Editor, London | Publication date: Monday 30 January 2023        
    • Crude declines make little difference for FTSE oil & gas producers, with the long-term view remaining bullish for energy Source: Bloomberg   Commodities Petroleum Petroleum industry Brent Crude Gas Market trend  Joshua Mahony | Senior Market Analyst, London | Publication date: Monday 30 January 2023  Crude declines see Brent lose 34% Crude oil has suffered substantial losses over the course of the past year, with brent currently trading 34% below the March 2022 peak of $131.51. This decline represents grounds for optimism on the inflation-front, with headline CPI sliding lower across Europe and the US. However, traders continue to wonder whether this move will represent the top for the market or simply a temporary pullback within a long-term uptrend. Key considerations for the bulls include the re-emergence of Chinese economic activity as Covid restrictions are withdrawn, set against the risk of declining demand as recessionary pressures take hold. Looking at the monthly Brent crude chart below, we can see that this current month looks to be closing out in a doji candle, marking a second consecutive month of indecision. Meanwhile, the stochastic oscillator appears to be tightening, signalling the potential for a bullish shift in momentum before too long. With price currently trading around the 76.4% Fibonacci support level, the bulls will hope that the long-term uptrend will soon kick back into play. Source: ProRealTime SPR back down to multi-decade lows Another aspect to consider comes from the US, who have been drawing down their strategic petroleum reserve in a bid to support prices as OPEC restrict output. That decline in reserves can only last so long, with current levels back down to the lowest point since 1983. Recent comments have signalled that the US could move to instead seek to top-up their reserves around the $70 mark. Could a shift from supplier to consumer help tip sentiment back in favour of the bulls? FTSE oil & gas producers outperform One interesting area of outperformance has been the relative strength of oil producing stocks despite this decline in crude prices. Thus far, we have largely seen producers continue their ascent, with the volatility in oil and gas prices doing little to stifle sentiment. However, the chart below highlights how the FTSE 350 oil & gas producers sector essentially provides a more stable play on energy prices, with the stocks largely reflecting the underlying trend without necessarily seeing the same major swings that can occur for crude. The pullback we have seen in Brent (blue line) thus brings the total gains over the past two-years down to the area seen for FTSE 350 producers. For now, the uptrend remains in play for the sector, thus highlighting the belief that this recent pullback in energy prices serves to reflect a reversion back into the mean uptrend. With that in mind, the weakness seen in energy prices, and consolidation in FTSE oil & gas stocks, is deemed a potential precursor to another move higher to continue the long-term uptrend. Source: ProRealTime
  • Create New...