This week we can observe a slight increase in bitcoin quotations, which led to the test of a strong supply zone, which is located in the price region of 11,600 USD. Due to the weaker response to the mentioned zone, I expect it to break and continue to grow, at least near the next resistance located in the price region of 12,600 USD.

Picture 1. Technical analysis, bitcoin, H1,26.01.2018

In the case of defense of level 11600, the price should remain in consolidation with its lower limit located in the vicinity of the psychological level of 10,000 USD. If we will see a test of this level, it should be a good opportunity to take a long position.

Picture 2. Technical analysis, bitcoin, M15,26.01.2018

Breaking the 10800 USD supply zone, visible from the point of view of M15, will be a confirmation of the price remaining in consolidation and possible decreases near this level of 10,000 USD.

Risk Warning: The contents of this analysis is for informational purposes only and does not constitute investment advice.

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