Technical view on Bitcoin

From the low of US$ 3,869.50, which was registered on March 13, 2020, Bitcoin has marked the sequence of higher tops & higher bottoms. It has gained nearly 835 per cent from the low of US$ 3,869.50 while in the calendar year 2020, it gained over 302 per cent.   

However, Bitcoin has formed a spinning top candlestick pattern as of January 08, 2021 and thereafter, witnessed a correction. The correction is halted in between 38.2 per cent and 50 per cent Fibonacci retracement level of its prior upward move (US$ 17,600- US$ 41,921.70) and coincides with the 20-day EMA level.   

Currently, it is trading above its long and short-term moving averages. These moving averages are exactly in the desired sequence, which suggests that the trend is strong. Also, it is trading above its 200-DMA since the last 264 trading sessions. Considering the close of January 17, 2021, it is trading above its 200-DMA by over 129 per cent while the 200-DMA is in a rising mode, which is a very bullish sign.   

Talking about the indicators, the leading indicator i.e. the 14-period weekly RSI is currently quoting at 80.12 and it is in a super bullish range. On the weekly chart, the MACD is above zero line for 13 weeks and above the signal line for 31 weeks.  

Technically, all the factors are currently aligned in support of the bulls. Going ahead, Bitcoin has strong support in the zone of US$ 33,880-US$ 32,450, while on the higher side, major resistance is placed in the zone of US$ 39,700-US$ 40,050 level.  

The price of Bitcoin today is US$ 36,290.39 with a 24-hour trading volume of US$ 50,85,98,29,453. Bitcoin is up by 5.03 per cent in the last 24 hours. The current CoinMarketCap ranking is #1, with a market cap of US$ 6,75,13,56,93,328.