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Bitcoin Price Rallies Over 10% To Clear Hurdles

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Aayush Jindal

Key Highlights

  • Bitcoin price started a fresh increase above the $23,000 resistance.
  • BTC broke a major bearish trend line at $22,215 on the 4-hours chart.
  • Gold price declined further below $1,850 and $1,842.
  • EUR/USD remains at a risk of more losses below 1.0700.

Bitcoin Price Technical Analysis

Bitcoin price formed a base and started a fresh increase above $22,000 resistance. BTC/USD surpassed key hurdles near $22,200 to move into a short-term positive zone.

Looking at the 4-hours chart, the price traded above the $22,400 resistance and remained well above the 200 simple moving average (green, 4-hours). It also cleared a major bearish trend line at $22,215.

BTC surged above the $22,800 resistance and the 100 simple moving average (red, 4-hours). Finally, there was a spike above the last swing high at $24,246.

The bears appeared near the $25,000 resistance zone. It is close to the 1.236 Fib extension level of the downward move from the $24,246 swing high to $21,362 low. A close above the $25,000 level may perhaps start another steady increase in the coming sessions.

In the stated case, the price could rise towards the $26,200 level. Any more gains could set the pace for a move towards the $27,000 level.

On the downside, an initial support sits near the $24,250 level. The main breakdown support sits near the $23,250 zone. If there is a downside break and close below $23,250, bitcoin might start another decline in the coming days. In the stated case, it could revisit the $22,500 support or even test $21,400.

Economic Releases

  • US Initial Jobless Claims - Forecast 200K, versus 196K previous.
  • US Housing Starts for Jan 2023 (MoM) – Forecast 1.360M, versus 1.382M previous.
  • US Building Permits for Jan 2023 (MoM) – Forecast 1.350M, versus 1.337M previous.
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