Bitcoin 1hr Chart Analysis – BitMEX BTC/USD Perpetual

Hello dearest traders! Today, in the middle of the indecisiveness, we decided to help you out by doing Bitcoin 1hr chart analysis. We took BitMEX BTC/USD perpetual price chart as BitMEX is among the biggest crypto derivatives trading platforms.

Bitcoin currently fluctuates around $8,600 but we need to know where it’s going to go. Therefore, without any ado, let’s see what BTC has prepared for us this time.

Bitcoin 1hr Chart Analysis Reveals the Ascending Triangle

As the title says, Bitcoin is forming an ascending triangle on an hourly chart. By itself, this is a bullish formation.

Bitcoin 1hr chart ascending triangle
Source: coinalyze.net

The resistance still persists at roughly $8,750 and there are obvious higher lows. This, by itself, is a good sign of at least a temporary rebound. However, there are other things we have to take into account when we analyze cryptocurrency price movements. Hence, the first thing to do is to deduce why Bitcoin had a mini-crash at $9,180.

The Divergence and the 200MA

BItcoin 1hr chart divergence

Our Bitcoin 1hr Chart Analysis unambiguously shows a huge divergence between the price movement, RSI and MACD. While the price was still moving upward fueled most likely by the FOMO, MACD and RSI indicators revealed clear signs of a trend reversal. However, it wasn’t only these divergences that experienced traders could base their trading decisions on.

Let’s zoom out to the daily chart for a moment. The 1-day Bitcoin chart is a crucial interval for discovering long-term trends. The 200MA is what may, and often proves to be, a reliable resistance and support level. As you can see in the chart below, this time, the 200MA also rejected the Bitcoin uptrend.

Bitcoin 1day 200MA

The price of Bitcoin did briefly pass across the 200MA. However, moving average, along with the divergences, resisted the rally as the mini-dump took place. Nevertheless, the 50MA on a daily chart is getting in place to cross over the 200MA, which is often called the golden cross. Golden cross on a daily chart announces a possible longer bullish period and that is what we can look forward to.

Still, where to take the position, you ask?

Bitcoin 1hr Chart Analysis – Entry Levels

Now, let’s get back to our 1hr Bitcoin chart. Since we have an ascending triangle, many of you will wonder if this is a good time to take a long position. Well, it depends.

Bitcoin entry levels

If you are willing to accept more risks, this is the time to take a long position. There is the triangle and the next chart we’re going to present shows some signs of a breakout. Nevertheless, there is another level that we have to be aware of. The blue zone starting at $8,150 may prove to be an even better entry point. Therefore, we don’t recommend using high leverages which can get your position quickly liquidated.

But first things first…

Bitcoin 1hr volume

Just like it should in such formations, the volume is shrinking towards the end of the triangle as traders wait for some kind of breakout. Inside the triangle, the buy/sell volume indicator (you can only find on Coinalyze) reveals that throughout the formation, sellers dominated the market. Despite that fact, the price of BTC scored higher low after higher low, which may be the sign of a new rally.

Nonetheless, this still might not be enough to make an educated decision. Therefore, let’s dive a bit deeper and see what Fibonacci retracement has to say on the matter.

Bitcoin 1hr Fibonacci retracement

According to Fibonacci retracement, Bitcoin is currently at the 0.236 level, precisely. This correlates with our theory of a good entry point. However, the bad news is that the second support level is exactly at the 0.5 level at around $8,100, which is always a more possible scenario. Moreover, we find the third major support to be placed at the 0.618 Fibonacci level at $7,740. More often than not, the latter provides the perfect entry spot for a longer-term trade.

Now, if all this confuses you, bear in mind that trading is all about making decisions and the amount of risk you are willing to take. Waiting for any kind of trend confirmation is the safest way to invest but it doesn’t bring the highest gains. Therefore, if you decide to take a back seat and wait to see what’s going to happen, you may miss the possible pump at the triangle closure. On the other hand, if you take a long position now, you may find yourself on the wrong side of the trade if the price declines towards the two of the other mentioned price levels.

When Can We Expect Another Bigger Move?

It’s no secret that our TA team is long-term bullish on Bitcoin. Still, the micro-movements are also there to score some profits and this analysis was an attempt to provide some of the possible short-term scenarios and trading ideas. However, when we try to predict price action on a larger scale, we like to do a thing. We simply take the Fibonacci time zones and see if the price movement followed some sort of a pattern. So, we also did that this time around.

Bitcoin 1hr Fibonacci time zones

Again, if we take a look at the chart above, it is obvious that all major movements took place around the white lines of the Fibonacci time zones indicator. Therefore, it may be quite possible that we’ll have to wait until the end of January or the beginning of February to see a bigger move.

In any case, trade responsibly and don’t base your trading decisions only on what you read despite how many times someone was right. Your decisions are your own and have to be based on your own analysis.

Happy and profitable trading to you all!

Disclaimer:

You should look elsewhere for investment advice since this isn’t it. Even if it looks like it, it’s not. Cryptocurrencies are extremely volatile and risky speculations. Always do your own research. Consider consulting an investment professional prior to investing your money.