On January 3rd, Bitcoin‘s 15th anniversary, investors were startled by a report from an analysis firm predicting a sharp price drop. As of January 4th, when the article was written, Bitcoin was trading at $43,284. The four-hour Bitcoin chart highlights a rising channel formation, providing critical insights without any support or resistance breaches. Bitcoin’s failure to break the resistance level on January 1st, but its success in holding the support level, along with no bar closures below the EMA 200 (red line), suggests a bullish outlook.
Key support levels to watch on the four-hour Bitcoin chart are $43,024, $42,514, and $41,466. A bar closure below $42,514, particularly, could lead to a loss of momentum and a break below the EMA 200 level.
On the resistance side, the significant levels are $43,411, $43,884, and $44,410. A four-hour closure above the $43,884 level, where the EMA 21 (blue line) and EMA 7 (green line) intersect, could accelerate Bitcoin’s price momentum.
The daily BTC.D chart, which indicates Bitcoin’s market dominance, shows a rise after a decline that started in the second week of December, hinting at a shift in investor preference towards Bitcoin. However, a downturn at the resistance line could signal a loss of dominance and a potential rise in altcoin markets.
For BTC.D, the critical support levels to monitor are 2110, 2055, and 1993. A daily closure below 1993 could spur a rally in the altcoin market.
Important resistance levels for BTC.D are 2148, 2229, and 2303. A daily closure above 2303 could lead to a significant downturn in the altcoin market and an increased investor shift towards Bitcoin.