Bitcoin Key Level to Watch at 50 Week MA $7,709
Bitcoin stumbled early this morning all the way back down to $7,331, but has made a modest recovery throughout the afternoon. Volume is dropping indicating a big move ahead. Which direction is it off to next?
First chart we are looking at is the hourly analog Bitcoin Bitfinex look. The snapshot below shows how price was rising inside this orange rising wedge formation over the past few days and then as expected from this sort of pattern price was pushed lower in the early morning hours EST.
I have adjusted the blue long term up-trending support because depending on where you draw your lines from on the long-term chart connecting wicks and candles the trend line can widely vary. I moved this line back up to help support the bounce and it isn’t too far off from around the $7,250 level targeted yesterday.
The good news is that after the bounce at the thick blue line, price then popped back above the black 200 hour MA and purple 100 hour MA. Both are acting as very nice support and trending upwards.
Volume has dropped off sharply and the market is waiting for who wants to decide what’s next. Since price got back above the 200 and 100 MA’s around 9am it even came back down and retested it a few hours ago successfully. Next stop will most likely test the $7,470 level with the 50 and 20 MA’s.
The $7,500 will be a big level to break to the upside too, but I think its possible from looking at the indicators.
There has been several strong signs of bearish divergences with the peaks on the yellow line in the RSI getting lower and lower, but the price peaks getting higher and higher. At the same time, the valleys on the RSI indicated by the turquoise line are showing strong signs of hidden continued bullishness. I do like how the RSI overall is resetting down to lower oversold levels, which creates a nice springboard for where price moves higher can happen.
The MACD indicator is also attempting a bullish crossover as well with the blue line attempting to break above the orange line. I have also drawn a lime green line on the histogram portion of the indicator showing its upward momentum.
On the daily analog Bitcoin Bitfinex chart, I think things overall look pretty bullish. Price has been hugging this blue up-trending line and the last 5 candles this week are of a big bullish engulfing candle on Tuesday and pretty much 2 indecision dojis the last 2 days.
If today’s candle holds, we will get a third doji and I haven’t seen this much indecision in the market since last November. However given the look of the hourly chart, I think we could get a move higher. It may not start tonight, but definitely appears likely tomorrow.
A target to the upside could be that turquoise down-trending 20 day moving average at $7,876 and maybe all the way up to that thin black horizontal support line at $7,942.
An important thing to remember that I reviewed yesterday is that 50 week moving average is sitting up at $7,729 and will be a key area to get back above by Saturday evening otherwise a big bearish downturn might commence.
We do not want price closing below there because I could see the shorts piling into the exchanges in anticipation of a long bear market. Even if that did happen, I would think it may be one final attempt to shake out any weak hands holding cryptos in the market, which would then be quickly scooped up by the whales. We will see.
Otherwise the RSI looks good, having almost tapped oversold levels and the MACD is leveling off and beginning to curl upward into a bullish crossover as well.
Have a good weekend!
-Vanddar
First chart we are looking at is the hourly analog Bitcoin Bitfinex look. The snapshot below shows how price was rising inside this orange rising wedge formation over the past few days and then as expected from this sort of pattern price was pushed lower in the early morning hours EST.
I have adjusted the blue long term up-trending support because depending on where you draw your lines from on the long-term chart connecting wicks and candles the trend line can widely vary. I moved this line back up to help support the bounce and it isn’t too far off from around the $7,250 level targeted yesterday.
The good news is that after the bounce at the thick blue line, price then popped back above the black 200 hour MA and purple 100 hour MA. Both are acting as very nice support and trending upwards.
Volume has dropped off sharply and the market is waiting for who wants to decide what’s next. Since price got back above the 200 and 100 MA’s around 9am it even came back down and retested it a few hours ago successfully. Next stop will most likely test the $7,470 level with the 50 and 20 MA’s.
The $7,500 will be a big level to break to the upside too, but I think its possible from looking at the indicators.
There has been several strong signs of bearish divergences with the peaks on the yellow line in the RSI getting lower and lower, but the price peaks getting higher and higher. At the same time, the valleys on the RSI indicated by the turquoise line are showing strong signs of hidden continued bullishness. I do like how the RSI overall is resetting down to lower oversold levels, which creates a nice springboard for where price moves higher can happen.
The MACD indicator is also attempting a bullish crossover as well with the blue line attempting to break above the orange line. I have also drawn a lime green line on the histogram portion of the indicator showing its upward momentum.
On the daily analog Bitcoin Bitfinex chart, I think things overall look pretty bullish. Price has been hugging this blue up-trending line and the last 5 candles this week are of a big bullish engulfing candle on Tuesday and pretty much 2 indecision dojis the last 2 days.
If today’s candle holds, we will get a third doji and I haven’t seen this much indecision in the market since last November. However given the look of the hourly chart, I think we could get a move higher. It may not start tonight, but definitely appears likely tomorrow.
A target to the upside could be that turquoise down-trending 20 day moving average at $7,876 and maybe all the way up to that thin black horizontal support line at $7,942.
An important thing to remember that I reviewed yesterday is that 50 week moving average is sitting up at $7,729 and will be a key area to get back above by Saturday evening otherwise a big bearish downturn might commence.
We do not want price closing below there because I could see the shorts piling into the exchanges in anticipation of a long bear market. Even if that did happen, I would think it may be one final attempt to shake out any weak hands holding cryptos in the market, which would then be quickly scooped up by the whales. We will see.
Otherwise the RSI looks good, having almost tapped oversold levels and the MACD is leveling off and beginning to curl upward into a bullish crossover as well.
Have a good weekend!
-Vanddar
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