Bitcoin price (BTC) will always stay with the Proof of Work algorithm. Pictured is a Bitcoin on a circuit board.
Bitcoin price is holding well below the resistance zone of the old All Time High of 2017. Now it just needs to break this zone sustainably. Are investors‘ hopes for further rising prices justified or will we soon see a longer-lasting correction phase? In the weekly, daily and 4-hour charts, we want to approach this question from a technical perspective.
Still bullish for the week
First, let’s turn our attention back to the overarching weekly time unit. There you can get a good overview of the entire price trend. Currently important support and resistance zones can be determined quite easily for long-term investors. However, these zones are also relevant in the lower time units.
If we look at the last weekly candle, we see that the Bitcoin price fell by a crisp $1,800 shortly after the opening of the week. In our last report, we suspected a correction to the zone between $17,500 and $17,600, which was exactly hit. The price then rose almost back to the opening level.
As a result, the Relative Strength Index (RSI), an indicator showing buying power, was unable to move out of the expensive, overbought zone during the week. So the alarm bells continue to ring for long positions.
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Bitcoin price shows strength again
After a correction took place this week, the bulls were able to reassert themselves. The still acute resistance zone above the Bitcoin price is being attacked again. Once again, the bulls are driven out of this zone by the bears and rallied again this week for an attack.
Both market factions, bulls and bears, are present in large numbers above and below the price. The price range in which the price moves is getting smaller and smaller. The price is being violently squeezed from both sides. And what happens when two opponents push against each other with all their might? Correct. One of them eventually runs out of steam and the winning opponent breaks through with momentum. So if there is a breakout in one direction or the other, it will most likely be massive.
Thanks to this week’s correction, the RSI has settled back into the normal range. This means that there is plenty of room for the Bitcoin price on both sides, upwards and downwards. The RSI only has a limiting effect in the overbought or oversold area.
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Entry opportunity in the 4-hour chart
Those who read the last report will remember the triangle as a consolidation in the 4-hour chart. The price fluctuations became smaller and smaller and the trading volume decreased. The Bitcoin price had to decide on a direction. As mentioned above, we targeted the support zone (blue) between $17,500 and $17,600 in a bearish wave.
In conjunction with the Moving Average 200, an indicator that shows the long-term trend in the various time units, this zone offered very good support. Buying power was on the rise again. A channel (orange) formed from this entire movement, the triangle and the subsequent sell-off to the support zone. This channel was exited bullishly yesterday morning.
Should the Bitcoin price hold the current support zone between $18,800 and $19,000, then there is the possibility of a definite new all-time high. However, rash, spontaneous trades only lead to money loss. Therefore, always keep an eye on the higher time units and think carefully before deciding on a direction.