Bitcoin Prepares for a Breakout

BTC experienced a reduced volume of transactions in the late periods of November and December. The reduced volume of transactions was revealed by the small candles that aligned between the key levels of $18325.0 and $15416.0. The lethargy in the Bitcoin market was followed by a massive displacement to the upside, which resulted in a change in the direction of the market.

After the breakout of BTC in January, the bearish trendline was used as a launch pad to shoot prices to the moon. The price soared aggressively above $24826.0. Currently, the market is experiencing another phase of reduced volatility as the daily candles align in a pennant. A breakout is impending in Bitcoin’s space.

Bitcoin Key Levels
Demand Levels: $24826.0, $18325.0, $15416.0
Supply Levels: $32655.0, $35000.0, $40000.0

BTC experienced long-term consolidation from November until January. The volume of transactions decreased gradually from November until the end of 2022. In January, after witnessing a sudden increase in the volume of Bitcoin transactions, the Moving Averages (periods nine and twenty-one) led the market above the bearish trendline. A pullback in the market retested the bearish trendline. The stochastic revealed the market was oversold upon the retest. The Buyers used the opportunity to drive the price of BTC above $24826.0.

Currently, the volume of BTC transactions has reduced drastically as the daily candles align in a pennant. An injection of volatility in the market is expected to foster a breakout towards the bullish order block of $24826.0 for an ascent to $32655.0.

Learn from market wizards: Books to take your trading to the next level

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Tip TV

• 

  Azeez Mustapha

• 

  Guardian Stockbrokers

• 

  Kiana Danial