Bitcoin’s climb from lower $8,000s to mid-$8,000s was an expected move. However, as mentioned in the previous article, there was a chance of Bitcoin climbing higher; and this chance still persists as Bitcoin stands at $8,640 with a market cap of $157 billion.
The Hourly
The hourly chart of Bitcoin showed the target of $8,900 and even $9,000 to be achieved. The only change is the dropping of the 200-DMA [purple line] to the $9,000 level as seen in the chart below.
The MACD indicator showed a bearish crossover taking place as Bitcoin hit the first target, indicating potential exhaustion of momentum for bulls. The OBV for Bitcoin here has plateaued at $183K and showed possible signs of sideways or downward movement.
Although highly unlikely, if the price ever decides to go south, there is a band of support [yellow-ish band] ranging from $8,300 to $8,100. However, this is unlikely for Bitcoin, at least, as of now.
Source: BTC/USD TradingView
All-in-all, the hourly chart showed a sideways movement for the next 6 hours or so, followed by a surge within the next 24hr – 48hr. This will put BTC in the $9,000 zone; hopefully, this time around, CT might not post Vegeta memes. An interesting clockwork-like movement is set to happen once BTC reaches the $9,000 zone.
The Weekly
As seen in the chart, the weekly chart looks frail, as the week ranging from January 21 to 27 had almost no effect on BTC. This could be explained by the declining resistance line stretching all the way back to 2017, which has been keeping BTC down. The only two things keeping the king coin from collapsing is the 21 weekly moving average and the MACD, the latter indicated a bullish crossover.
Source: BTC/USD TradingView
OBV and the RSI for BTC showed a plateauing, indicating, sideways or downward movement for BTC as it reaches $9,000. The interesting observation mentioned above would be BitMEX’s Bitcoin Open Interest which is presently at $900 million-mark. Long has there been a trend of Bitcoin’s OI hitting $1 billion and the collapsing allowing the price to collapse along with it.
Source: Skew
Moreover, the Bitcoin Options expiring in the month of January constitute about 30% of the Bitcoin Options OI, this will also be a significant factor in the collapse of Bitcoin from $9,000 level.
Conclusion
There is a high chance of Bitcoin hitting $9,000 in the next 24 to 48 hours, however, there is also a small chance it might go sideways. One interesting evolution to witness would be the collapse of Bitcoin from $9,000 as OI hits $1 billion.
