Bitcoin Technical Analysis: Navigating Bearish Currents


Bitcoin, with a market capitalization of $798 billion and a 24-hour trade volume of $16.58 billion, is currently hovering just above the $41K zone. A detailed analysis of its 1-hour, 4-hour, and daily charts reveals a predominantly bearish trend.

Oscillators and Key Indicators

Oscillators, such as the relative strength index (RSI), Stochastic, and commodity channel index (CCI), present a mixed signal. The RSI at 40 suggests a neutral to bearish stance, while the Stochastic at 12 and CCI at -120 show a balancing act. However, the momentum indicator points to positivity at -2054, contrasting with the moving average convergence/divergence (MACD) level at -484, indicating a bearish outlook.

Moving Averages

The moving averages (MAs) offer a more bearish outlook. Both the exponential moving average (EMA) and simple moving average (SMA) across various timeframes, from 10 to 50 days, predominantly signal negative sentiment in the market, reflecting a downward trend. However, the longer-term EMAs and SMAs, specifically at 100 and 200 days, show bullish signals, suggesting potential long-term upside amidst short-term volatility.

4-Hour Chart

The 4-hour chart reveals a recent bearish trend, highlighted by a significant drop and subsequent consolidation. This period of less volatility and consolidation could indicate market uncertainty. Traders may consider waiting for a bullish reversal or a breakout above resistance levels as potential entry points, while exit points could focus on protecting against further downside movement.

Daily Chart

On the daily chart, bitcoin exhibits a more extended bearish phase with consistent drops and increasing volume on these bearish signals, confirming the downtrend's strength. Entry points for long positions could be identified through bullish patterns at key support levels or candle closures above previous highs, while exits might focus on minimizing losses if the price breaks below support levels.

1-Hour Chart

The 1-hour chart offers a more granular view of bitcoin's price movements, showing a clearer consolidation pattern post-downtrend. Entry points for long positions could be identified through breakouts or bullish patterns at support levels, while exit strategies should focus on minimizing losses if the price breaks below recent lows, especially with signs of significant volume.

Market Outlook and Conclusion

Overall, the market exhibits a bearish phase, necessitating caution in long positions and attentiveness to reversal signals. Volume remains a critical indicator, and spikes in conjunction with price movements are essential to confirm trend strength. Investors should be wary of false breakouts or reversals and strategically employ stop-losses to manage risks.

Bull Verdict

Despite the prevailing bearish signals, there are underlying strengths in bitcoin's market that could fuel a bullish reversal. The long-term moving averages and the potential for reversal patterns on the daily chart suggest resilience. If the market responds positively to broader economic cues and investor sentiment shifts, there is a reasonable prospect for bitcoin to initiate a recovery phase, breaking through current resistance levels and signaling a bullish trend.

Bear Verdict

The preponderance of bearish indicators across bitcoin's technical analysis points to a continued downtrend in the near term. Oscillators and short-term moving averages, especially on the 1-hour and 4-hour charts, indicate sustained selling pressure and a lack of strong buyer momentum. Unless there is a significant change in market dynamics or external factors, BTC is likely to face further downward pressure, making lower price levels a distinct possibility in the short to medium term.

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Frequently Asked Questions

Are precious metal IRAs a smart investment?

It all depends on your willingness to take the risk of an IRA account losing its value. These are good if you have $10,000 of cash and don't expect them grow quickly. However, if you plan on saving for retirement over several decades and want to invest in assets that are likely to increase in value (gold), these may not be the best choice. They can also come with fees that could cut into any gains.

How much should precious metals be included in your portfolio?

The best way to avoid inflation is to invest in physical gold. Because you are buying into the future value of precious metals and not the current price, when you invest in them, it is a way to protect yourself from inflation. So as prices rise, so does the value of your investment.

Gains will be taxed if you keep your investments for at minimum five years. After that time, capital gains taxes will be due. You can learn more about gold coins by visiting our website.

Are gold IRAs a good investment?

Purchase shares in mining companies to invest in precious metals like gold. This is a good way to make money when you invest in gold and other precious metals like silver.

But, owning shares in direct form has two downsides:

If you hold on to your stock for too much time, you risk losing money. Stocks can fall more than their underlying asset (like, gold) when they decline. This means that you might end up losing more money than you make.

You may also miss potential profits if the market recovers before you sell. Be patient and wait for the market's recovery before you make any profits from your gold holdings.

If you prefer to keep your investments apart from your finances, physical gold is still an option. A gold IRA can help you diversify your portfolio, and protect against inflation.

Visit our website to learn more about gold investment.

How can you withdraw from a Precious metal IRA?

If you have a precious IRA company such Goldco International Inc. account, you may be tempted to withdraw your funds. This will ensure that your metals are worth more than if they were in an account with a precious metal IRA company like Goldco International Inc.

Here's how to withdraw your precious metal IRA money.

First, verify that your precious metal IRA allows withdrawals. Some companies permit this, while some don't.

Second, find out if you are eligible for tax-deferred gains from selling your metals. This benefit is provided by almost all IRA providers. But, not all IRA providers offer this benefit.

Third, you should check with the provider of your precious metal IRA to determine if there are fees for these steps. You may have to pay an additional fee for the withdrawal.

Fourth, it is important to keep track of your precious-metal IRA investments for at most three years after you have sold them. In other words, wait until January 1st each year to calculate capital gains on your investment portfolio. Next, fill out Form 8949 to determine the amount you gained.

The IRS requires that you report your sale of precious metals. This will ensure you pay taxes on all the profits that your sales generate.

Before selling precious metals, it is a good idea to consult an attorney or trusted accountant. They can help ensure you follow all necessary procedures and avoid costly mistakes.

Can you make money on a gold IRA?

It is important to first understand the market in order to be able to invest and secondly to identify what products are currently available.

Trading should not be started if you don’t have sufficient information.

Find a broker that offers the best service to your account type.

Many different accounts are available, including standard IRAs and Roth IRAs.

If you have any other investments such stocks or bonds, you may want to consider a rollover.


  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (
  • SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (
  • The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (
  • To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (

External Links

How To

Things to Remember About the 2022 Best Precious Metals Ira

Precious Metals Ira remains one of the most sought-after investment options. This article will teach you what makes precious metals so attractive, and how to make informed decisions about investing in precious materials.

These assets are renowned for their long-term potential growth. The historical data shows incredible returns for gold prices. Over the past 200+ years, gold prices rose from $20 to almost $1900 an ounce. The S&P 500 Index, however, grew by only around half of that amount.

In times of economic uncertainty, gold is often considered a safe haven. Stock market downturns cause people to sell their stocks and seek safety in gold. Inflation is also a hedge, so gold can be used as a security measure. Many economists believe that inflation will continue to exist. As such, physical gold is an excellent way to protect your savings and prevent future price increases.

However, before you decide to buy precious metals like palladium and gold, as well as platinum, silver or gold, there are several things to be aware of. First, decide whether bullion bars are better than coins. Bullion bars can be bought in large quantities (like 100-ounces) and kept aside until required. Coins are smaller versions of bullion bars, which can then be used to buy small amounts of bullion.

The second thing you need to consider is where you will store your precious metals. Some countries are safer than other. For example, you might consider storing precious metals overseas if your home country is the United States. But if you're planning on storing them in Switzerland, you might want to ask yourself why.

Finally, you should decide whether you want to invest directly in precious metals or through “precious metals exchange-traded funds” (ETFs). ETFs are financial instruments which track the performance and price movements of different commodities like gold. These are a way to have exposure to precious metals but not necessarily own them.


By: Jamie Redman
Title: Bitcoin Technical Analysis: Navigating Bearish Currents
Sourced From:
Published Date: Mon, 22 Jan 2024 13:41:47 +0000

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