In this technical analysis of Bitcoin January 2019 we present pivot points, technical indicators and
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.