FX.co ★ Trading Signals for BITCOIN (BTC/USD) on January 31, 2024: buy above 42,300 (3/8 Murray - 200 EMA)

Early in the European session, Bitcoin is trading around 42,890, below the 4/8 Murray, above the 21 SMA, and above the 200 EMA with a bullish bias but showing signs of exhaustion.

Bitcoin fell sharply after attempting to break 4/8 Murray around 43,700 and has since started a sharp decline finding initial support at 42,643. This level coincides with the bottom of the uptrend channel and could offer an opportunity to buy only if BTC consolidates above this area.

Bitcoin could rise in the next few hours if it keeps trading above 42,300 (200 EMA) and we could expect it to reach 43,750. Once BTC overcomes this resistance, the instrument could reach 5/8 Murray around the psychological level of $45,000.

Yesterday in our previous Bitcoin analysis, we noticed that Bitcoin has strong resistance around 4/8 Murray. We are seeing that it has proven to be strong. Therefore, if you are selling BTC, you will probably take profits around 3/8 Murray. If Bitcoin breaks this level, we could continue selling with targets at 2/8 Murray around the psychological level of $40,000.

In case Bitcoin breaks above 43,750 we should avoid selling. A new bullish cycle will likely begin and the token could reach 5/8 Murray at 45,312 and could even reach 6/8 Murray at 46,875.

According to the eagle indicator, Bitcoin is producing a strong overbought signal. If it breaks below the uptrend channel and below 42,200 (200 EMA), Bitcoin is likely to accelerate its fall and return to levels of 39,062.