FX.co ★ Sajidctn | #Bitcoin chart analysis

Bitcoin H1 chart technical analysis Price Action & Structure The chart runs from 27 Dec to 5 Jan on the 1‑hour timeframe. The price swings between a series of highs and lows that form a clear bullish trend after a consolidation phase. The most recent candle closes at *92,919.24*, sitting near the upper edge of the chart. 1. *Support & Resistance*: The white line marks a long‑term support that was tested multiple times in late December, acting as a “floor” that buyers defended. The blue line represents an intermediate resistance turned support once broken, now serving as a dynamic support for the uptrend. The red line is the current resistance zone around 93,900‑94,000, where sellers may step in if price reaches it. 2. *Inducement & CHOCH (Change of Character)*: An *inducement* occurs when price “sucks” liquidity by sweeping a previous high/low to trigger stops before reversing. On Dec 28 the sharp spike above the prior high induced longs, then price collapsed briefly, showing a liquidity grab. *CHOCH* is seen around 31 Dec when the market shifted from a range‑bound phase to a bullish structure, breaking the previous equal highs and signaling a trend change. 3. *Equal Highs & Lows*: The chart displays multiple *equal highs* near 92,900 that formed a resistance ceiling before the breakout. *Equal lows* are visible in the Dec 27‑29 zone, establishing a baseline that defined the accumulation range. 4. *Order Blocks*: The bullish *order block* lies in the 88,000‑89,000 zone (the greenish area of the last significant up‑move). This zone is likely to act as a demand zone if price retraces. A bearish block appears near the recent high around 93,900, representing supply that could cap further upside. Indicators 1. *Volume*: Volume spikes on the Dec 28 breakout, confirming strong buying interest. The current volume (2,485) remains supportive of the uptrend, indicating participation in the rally. A drop in volume on a push higher would warn of weakening momentum. 2. *RSI (14)*: RSI sits at *78.66*, in overbought territory. This suggests the market is strong but also vulnerable to short‑term corrections or consolidations. Divergence (if any) between RSI and price would signal potential reversals; here it’s aligned with the bullish momentum.

Market Prediction The technical setup hints at a continued bullish bias as long as the blue support holds. A break above the red resistance could target the next psychological level near 95,000. Conversely, a dip below the blue support would invalidate the bullish structure and trigger a pullback toward the order block at ~89,000. Risk Management 1. *Position sizing*: Allocate a maximum of 1–2 % of capital per trade to protect against unexpected swings. 2. *Stop‑loss placement*: Set stops just below the blue support line (around 88,500) for long positions, or below the recent equal low for shorts. 3. *Take‑profit*: Target the next resistance (94,000) or use a trailing stop to lock profits as price climbs. 4. *Monitoring*: Keep an eye on volume drops or RSI divergence as early signs of reversal. Trading Blueprint *Entry*: Long on a clean break & close above the red resistance with volume confirmation. *Confirmation*: RSI staying above 70 supports continuation; watch for pullbacks to the blue support for better entries. *Exit*: Partial profit at the next resistance; full exit if price breaches support with heavy volume. Understanding *inducements*, *CHOCH*, and *order blocks* lets you anticipate liquidity hunts and structural shifts, while support/resistance, volume, and RSI give you the quantitative edge to time entries and manage risk effectively.