Jump to content

Bitcoin (BTC/USD) Technical Outlook: Turn Lower May Be Near

Recommended Posts


  • Corrective wedge in the works as bounce unfolds
  • Resistance via horizontal and trend-line in the vicinity
  • Sub-30k holds the next area of major support
Bitcoin (BTC/USD) Technical Outlook: Turn Lower May Be Near

BTC/USD has recently found a bit of reprieve from selling, but that may be short-lived as the rise looks corrective in nature and resistance stands in the way. If the timing of the these events is to hold, we could see a downturn develop in the next few days.

The bounce from around 33k is taking on the shape of an ascending wedge, which in the context of a strong trend is viewed as corrective price action. Adding to the bearish case is resistance in near confluence.

The trend-line running down from the November high is currently getting tested while the low from Jan 10 at 39558 was nearly tagged over the last 24 hours. If these levels are to prove problematic, then today or tomorrow could kick off another round of selling.

To trigger the corrective pattern and form a lower-low off the Jan 24, a break below 36631 is needed. This will break the recent sequence of higher highs and higher lows that make up the corrective formation.

The first meaningful level of support is the recent low at 32950, but the really big stuff doesn’t arrive until under 30k. From around that level down to 28600 are several important lows dating to early last year. We will have to see how price action looks at that juncture, should we see it, but that could help provide a more meaningful low. Or not.

From a tactical standpoint, waiting for the wedge to break down below 36631 before increasing a bearish bias. It is possible we see the wedge force a squeeze above the noted resistance levels, but if this is the case then BTC/USD will find itself around major resistance surrounding 40k and that may then put in a ceiling within the context of a downtrend.

If we see the drop to the big support dating to early last year, then those looking to look to play for a sharp bounce may find risk/reward appealing, and backing off a bearish bias then may warranted.



btc/usd daily chart


btc/usd 4-hr chart

BTC/USD Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.


Written by Paul Robinson, Market Analyst. 2nd Feb 2022, DailyFX

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
  • image.png

  • Posts

    • Ready to experience the power of the latest Telegram Signal Bot? Explore the exchange BetterTest Event and witness the potential for yourself! Experience firsthand the accuracy and efficiency of a unique signal bot in real-time trading scenarios. Test its capabilities and see how it can enhance your trading experience. Why Participate? - Refine User Experience: Help us improve the product by providing valuable feedback. - Enhance Audience Reach: Leverage your dedicated audience channels more effectively. - Community Management: Intuitively manage your communities and improve follower quality. - Top Channel Management Tool: Collaborate with us to create an industry-leading platform. Will you miss this opportunity to engage with exchange cutting-edge technology and take your trading to the next level?
    • Memecoins are super volatile, but if you're holding from here, keep an SL at break even & chill!
    • Grabbed a little bag, let's see how it goes!
  • Create New...