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bitcoin price BTCUSD
bitcoin BTCUSD

Bitcoin Price Consolidates Close to Three-Month Highs

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Nikolas Papas Forex Analyst
    Summary:
  • Bitcoin price gives up over 2% in early European trading session at $9324, after the crypto pair failed to make another fresh yearly high. The strong rally

Bitcoin price gives up over 2% in early European trading session at $9324, after the crypto pair failed to make another fresh yearly high. The strong rally this week broke above the 200-day moving average and boosted the positive momentum. We might see higher volatility today as it is the January closing of the CME futures.

BTCUSD is 30.10% higher in 2020 in an excellent January for all the cryptocurrencies. Bitcoin is accounting now for 66.3% of the total cryptocurrencies capitalization.

Nomura in Japan,  announced a crypto asset benchmark for institutional investors. It includes Bitcoin, Bitcoin Cash, Litecoin, Ethereum, and XRP in US dollars. The NRI/IU Crypto Asset Index is a partnership between Intelligence Unit, the Nomura Research Institute, and index provider MV Index Solutions. MVIS worked with crypto data company CryptoCompare to calculate the index.

Read our Best Trading Ideas for 2020.

Bitcoin Price Technical Outlook

Bitcoin is 1.90% lower today at 9319 as traders are taking some profits off the table. The bitcoin momentum is bullish as the cryptopair trades inside the ascending channel that started in early January. Above that the break of the 200-day moving average resistance also enhances the  positive momentum.

In the likely event of a correction, immediate support for bitcoin will be met at $9,303 the daily low. If BTCUSD breaks below that level, the next support stands at $8,893 the 200-day moving average. A break below will attract more sellers. The next  target for the bears then will be the 8,578 the lower boundary of the ascending channel.

On the upside, initial resistance stands at $9,529 the daily high. Next technical resistance will be met at $9,600 the high from November 4th. In case of a bullish breakout BTCUSD might visit the upper boundary of the ascending price channel in the daily chart at $9,960.