Bitcoin Technical Analysis January 2019

In this technical analysis of Bitcoin January 2019 we present pivot points, technical indicators and analysis with charts based on different indicators. These indicators are dow theory, bollinger bands and moving average for 21 days.

Pivot Points

Name S3 S2 S1 Pivot Points R1 R2 R3
Classic 2897.9 3294.5 3590.8 3987.4 4283.7 4680.3 4976.6
Fibonacci 3294.5 3559.2 3722.7 3987.4 4252.1 4415.6 4680.3
Camarilla 3696.5 3760.0 3823.5 3987.4 3950.5 4014.0 4077.5
Woodie’s 2847.7 3269.4 3540.6 3962.3 4233.5 4655.2 4926.4

Technical Indicators

Name Value Action
RSI(14) 37.233 Sell
STOCH(9,6) 16.358 Oversold
STOCHRSI(14) 40.164 Sell
MACD(12,26) -1053.500 Sell
ADX(14) 37.073 Sell
Williams %R -84.312 Oversold
CCI(14) -77.4914 Sell
ATR(14) 727.7303 Less Volatility
Highs/Lows(14) -952.7834 Sell
Ultimate Oscillator 34.577 Sell
ROC -40.644 Sell
Bull/Bear Power(13) -1635.9120 Sell

Analysis – Bitcoin Jan 2019

Looking at the chart we see that the coin is trading at $3912, the price is completely trading between channels with some false breakouts, with upper limit acting as resistance at $4060 and lower limit acting as support at $3833. Since there are many false breakouts so it is not suggested to take long position immediately after breakout as it might be false breakout.

Dow Theory – Bitcoin Jan 2019

According to Dow Theory the stock is currently appearing in accumulation phase which is area from where the price shoots up, and is generally considered great buying point, this is the time when the informed investors (experienced traders and institutions) are usually entering their positions. The price moves during the accumulation phase are slow. The accumulation phase often falls into the end of a downtrend.

Bollinger Bands – Bitcoin Jan 2019

Price is moving between the channels with the upper limit acting as resistance and lower limit acting as support, we also see that channel is shrinking indicating lesser volatility which means no big uptrend or downtrend is expected in near 2 months, indicating only swing trading opportunity.

Moving Average – Bitcoin Jan 2019

Taking 9 period moving (blue) averages with 21 period moving averages (red) , Bullish crossover is seen but the price is below the 9 period moving average indicating neutral behavior. So no inference can be drawn solely on moving averages but considering other factors it indicates less volatility.

Conclusion – Bitcoin Technical Analysis January 2019

Considering all the factors above it appears that bitcoin is currently is currently stuck in sideways trend, with upper limit acting as resistance at $4060 and lower limit acting as support at $3833, so this opportunity can be used for swing trading, also in sideways trend it is very important to pay close attention to Bollinger bands movement, as the band  will start expanding look for momentum as it will decide future trend. For long term investing it is good to buy around support and hold.

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