Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network.
Here’s the market structure of the coin for 04th January, 2022.
Bitcoin is currently trading at $46,901.72 levels, up by 0.99%. Bitcoin started off the day $46,539.10 levels. The coin was seen making bullish moves today. The coin’s intraday high stands at $46,920.69 levels. It tested the first resistance at $46,683.82 levels.
Looking at the daily chart, the coin fell to an intraday low of $46,026.73 levels. On the daily chart, Bitcoin broke through the 23.6% FIB resistance level. Coming up against the $47,073 resistance level, it fell to a late low of $46,822.48 levels.
On a daily chart the strong sell region extends between $46,684.91 and $47,037.94 levels. Contrarily, the strong buy region was between $45,912.76 and $46,203.58 levels.
On an hourly chart the coin is seen consolidating in a bearish flag pattern and is likely to break on the downside at $46,899.46 levels. Looking at the current momentum Bitcoin is likely to make a bearish reverse. However, coming back to $47000 price levels would need support from broader market.
Hourly RSI: The hourly RSI is moving below 77 levels, showing major price strength, owing to investors faith in the coin. The high RSI depicts coin’s overbought region.
Fibonacci Retracement levels: 23.6%: $45,971.56, 38.2%: $46,468.71, 61.6%: $47,270.26
Major support level: $46,870.52
Major resistance level: $47,844.40
On the upside prices may move towards $48000 levels. The first major resistance sits at 38.2 FIB retracement levels. In event of an extended rally upwards, the second major resistance sits at $47270 levels. Barring an extended crypto rally, the first major resistance is likely to cap the upside. On the downside a fall below $45,970 levels, will bring the first major support level $45,167.94 level in play.