Bitcoin Price Analysis: Why $9,200 Remains Within The Bulls’ Reach In January?

Bitcoin BTC

  • Bitcoin price break above the wedge pattern resistance renews the trajectory towards $9,200.
  • Establishing support above $8,600 is critical to Bitcoin’s journey to $9,000 and $9,200 respectively.

Bitcoin had an interesting end of the week following the bearish action witnessed across the cryptocurrency landscape. The largest crypto managed to defend the support at $8,200. This revived the suppressed bullish action, encouraging more bulls to join the market. Bitcoin not only took back the lost support at $8,400 but also reclaimed that at $8,600. The action continued towards $8,700, however, the bulls lost their mojo at $8,690.

BTC/USD 1-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Contributing to the bullish action was the breakout above the falling wedge pattern as observed on the 1-hour chart. It is apparent that the bulls have changed their focus towards $9,200 (previous week resistance). At the same time, it is clear that henceforth, recovery will not be easy considering the resistance at $8,700, $8,800 and $9,000.

From a technical perspective, the bulls are strong enough to sustain the gains made during the Asian session on Monday. As long as $8,600 sustains as support, the bulls will have the time to gather the strength to rise towards $9,000. Besides, the main focus is still on $9,200.

The Relative Strength Index (RSI) is within the overbought. However, the upward slope has changed to sideways motion. It means that ranging action could take center stage on Monday. At the same time, the Elliot Wave Oscillator suggests that bulls will likely continue to largely influence Bitcoin’s price action more compared to the bears.

Bitcoin Key Levels

Spot rate: $8,641

Percentage change: 0.54%

Relative change: 46.16

Trend: Bullish

RSI: Sideway motion hints continuing sideways trading above $8,600

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