Technical Analysis

Bitcoin breaks through $18K and fights downtrend

Market picture

Bitcoin rose
on Wednesday on the back of stock gains and strengthened further on Thursday
morning. In the low-liquid morning market, stop-loss orders were triggered,
pushing the price up 4% within an hour and a half. At the peak, the price
climbed to $18.3K but then retreated to $18.0K.

estimates that crypto whales resumed buying in early January. In five days,
addresses controlling between 1,000 and 10,000 coins increased their reserves
by more than 20,000 BTC.

volatility in bitcoin and Ethereum fell to extreme lows, which historically
preceded explosive moves in either direction, Glassnode said.

its 9th consecutive trading session of gains, Bitcoin is testing the downtrend
resistance line and the area of previous local highs. Therefore, today’s
bitcoin momentum will likely be decisive for the next few days and may even
register a long-term reversal, returning the market to the active buying phase.

On the other
hand, the RSI on the daily charts has entered overbought territory as a long
lull preceded the last rally. Are the bulls getting tired? We will find out in
the next couple of days.

News background

Digital founder Michael Novogratz said that we shouldn’t expect
cryptocurrencies to fall significantly, but it’s too early to talk about a
broad recovery.

According to
him, the cryptocurrency industry needs time to lick its wounds and restore
confidence. But BTC and ETH have stabilised in recent months and have even
risen in recent days.

strategist Mike McGlone said he believes in the future of the first two
cryptocurrencies. Bitcoin and Ethereum will perform better than other assets,
but they will still come under pressure when the stock market falls. McGlone is
confident that ETH will hold support at $1,000.

According to
Glassnode, the popularity of the stable USD Coin (USDC) has risen sharply since
the collapse of FTX. Users are more likely to choose this stablecoin because of
monthly audits by accounting firm Grant Thornton on USDC and the collateral of
short-term US government bonds.

This article was written by FxPro’s Senior Market Analyst Alex

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