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Bitcoin traders are lining up crucial BTC price points as the market starts to show new-year signs of life.
Market Update
Bitcoin (BTC) kept up pressure on a key resistance level at the Jan. 3 Wall Street open as fears of a new BTC price dip remained.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Bitcoin battles failed Christmas trendlines
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD passed $97,000 as the US session began.
After gaining rapidly at the start of the yearly candle and retesting $96,000 as support, Bitcoin eyed a reclaim of the 50-day simple moving average (SMA).
At $96,740 at the time of writing, the 50-day SMA had previously functioned as support for over two months before BTC price slipped below it in late December.
“Nice follow through on the falling wedge breakout,” popular trading account SuperBro wrote about the daily chart in part of its latest analysis on X.
“Careful not to get aggressive with longs into potential resistance, now we need to reclaim the 20 and 50 SMA and flip these back to support.”
BTC/USD 1-day chart with 20, 50 SMA. Source: SuperBro/X
Other social media market participants suspected that the trend line would be returned as support — something that would allow Bitcoin to continue the bull run, which began to cool last month.
Source: Sixtysecondalpha
On short timeframes, however, popular trader Roman had a word of caution for the BTC bulls.
“I think some of you are getting excited a bit too early,” he argued while examining 4-hour timeframes on the day.
“We’ve got a low volume pump with maxed stoch RSI. Generally means we come down a bit.”
BTC/USD 4-hour chart with stoch RSI data. Source: Cointelegraph/TradingView
Roman referred to the stochastic relative strength index (RSI), which stood above the “overbought” 70 threshold.
Fellow trader Daan Crypto Trades added another resistance level to the mix in the form of the 200-period SMA on the 4-hour chart.
Its counterpart, the 200-period exponential moving average (EMA), also played a part in short-term price action.
“Trading right around the high volume node. Meaning, most volume traded between these prices. Generally, price moves easier when its able to break away from such a high volume area,” he told X followers.
“The 4H 200MA is guarding that breaking on the top side. The 4H 200EMA below is offering support. I want to see this break above $98K+ to get the party started and start the run back to the all time highs. $95K is an important level to hold in the short term.”
BTC/USDT perp contract 4-hour chart. Source: Daan Crypto Trades/X
Analyst: Upcoming BTC price dip is for buying
As Cointelegraph reported, many commentators continue to favor a deeper BTC price correction before the uptrend resumes.
Related: BTC price ‘breakdown confirmed?’ 5 Things to know in Bitcoin this week
Among them is analyst BitQuant, who succeeded in calling several market inflection points during Bitcoin’s last price cycle.
Now, BitQuant uses social media cues as part of a theory calling for a dip due to market overexuberance.
“Soon, as we begin dipping lower, this will be everywhere. Don’t fall for it,” he warned in part of his latest post on the topic.
“When the dip comes, you should buy, not sell.”
Last month, BitQuant suggested that the near-term BTC price floor could come at near $80,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article first appeared at Cointelegraph.com News
