- Bitcoin price relatively unchanged since January 7, continues to hover between $40,000 and $43,000.
- Ethereum price structure, like Bitcoin's, appears to be developing a higher low pivot.
- XRP price maintains a critical support zone, showing strength while Bitcoin and Ethereum adjust lower.
Bitcoin price continues to sit on top of the neckline of a head-and-shoulders pattern, generating anxiety amongst bulls and bears alike. Ethereum price is testing the daily Tenkan-Sen as a support zone that could turn into a higher low. While BTC and ETH have suffered some selling pressure through the day, surprisingly, XRP has held relatively tough at the $0.75.
Bitcoin price developing a likely higher low before beginning a new push higher
Bitcoin price is sitting in a precarious position on its daily Ichimoku chart. The daily Tenkan-Sen and neckline of a head-and-shoulders pattern share a value area between $41,000 and $43,000. Bitcoin has spent the last twelve trading days within that range.
The Relative Strength Index (RSI) remains in bear market conditions, with the RSI line currently at 35 – just above the first oversold level of 30. Finally, the Composite Index oscillator shows the most immediate warning to some downside pressure, with its line showing signs of crossing below its fast-moving average from neutral conditions – a very bearish warning signal.
BTC/USD Daily Ichimoku Kinko Hyo Chart
However, Bitcoin has been overwhelmingly bearish since the beginning of 2022, but bears have been unable or unwilling to generate a substantial sell-off below the $40,000 price level. Therefore, if Bitcoin can maintain support near the daily Tenkan-Sen at $42,000, it will achieve a higher low and create the pivot necessary to begin a new leg higher.