BITCOIN TESTS UNDERLYING SUPPORT LEVELS

BITCOIN RETESTS JANUARY LOW... Bitcoin remains in a downside correction that started earlier in January.  And it's testing some important support levels.   The daily bars in Chart 1 show bitcoin testing a couple of support levels formed earlier in the month (horizontal lines).  It's also nearing its 50-day moving average (blue arrow).    Needless to say, those are important tests to its uptrend.  It's hourly bars show those previous support levels more clearly.

HOURLY BARS SHOW PREVIOUS SUPPORT LEVELS... The hourly bars in Chart 2 show the bitcoin correction that started during the second week of January.   It also shows it testing a previous support zone ranging from    30,300 down to 28,500 (see circles).   It remains to be seen if that support zone is able to contain the January correction.   The hourly bars also show initial overhead resistance that needs to be overcome near 38,000 (red line).