This article is intended for examination BitcoinTechnical forecasts for the first quarter. For deeper insights into the fundamental factors that will shape the cryptocurrency trend in the coming months, download DailyFX’s comprehensive trading guide for Q1.
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Bitcoin technical forecast
Bitcoin has had a strong performance this year, rising from an opening level of around $16.6K to a recent high of $44.7K with a few notable pullbacks along the way. The strong bottoming pattern between November 2022 and January 2023 led to a wave of higher and higher lows throughout the year, culminating in an 80% rally between early September and early December. The next target on the weekly chart is just above $48,000, the highest level since the end of March. Bitcoin’s current strength can be seen in the three simple moving averages that are currently lying between $29k and $32.3k. The 50-day SMA is also looking to create a golden crossover by breaking above the 200-day SMA. Weekly support is at $40k and just under $38k.
Bitcoin weekly price chart
Source: TradingView, by Nick Cawley
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Bitcoin’s daily chart remains positive although a short-term pullback cannot be ruled out. The 50-/200-dsma produced a golden cross on October 29 ($34.5K) and this allowed BTC to surge to a multi-month high of $44.7K on December 8. The chart is showing a series of higher lows and higher highs since mid-September and a break below $38K would be needed to invalidate this and turn the chart neutral. The 20 day EMA served as support during the recent rally but is now being tested. A confirmed break below could see Bitcoin trade lower to horizontal support a fraction below $38K.
Bitcoin daily price chart
Source: TradingView, by Nick Cawley
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