This week has been an exciting one for bitcoin. Crypto’s largest asset finally broke through a difficult zone and held above it. Let’s see what the charts say now that the dust has settled a bit!
Bitcoin’s weekly chart shows the 200-week moving average (MA) as a possible support area, well-below price. The 20-week MA also still appears relevant as a possible support level, should BTC head back down to retest that zone.
The asset still does not appear to have backtested the formerly difficult red zone of resistance in the lower $4,000 zone. Price might possibly drop down and test that area to see if it holds as support.
Another possible tough zone of resistance still lies above, roughly between $5,775 and $6,900.
This week’s large green candle seems to have halted near a lower wick from autumn of 2017, indicated by the yellow circles.
Bitcoin’s daily chart shows price does not appear to have backtested the 200-day MA as support yet. The coin also appears to have stopped right at the 300-day MA, not quite reaching the red zone of possible resistance above.
The McGinely Dynamic sits below as a potential support and is starting to curl upward following bitcoin’s move.
Volume this week has been significantly stronger than what we saw during the past months.
Bitcoin’s last surge upward seems to have tagged the upper Bollinger Band, finding resistance there. The coin could possibly be loading up inside the upper band, above the middle band, for another push higher.
The McGinley Dynamic is slowly following price upward, waiting as a potential support level below.
On the 1-hour chart, price has fallen to the McGinley Dynamic, seemingly holding it as support for the time being.
In a tweet yesterday, Chonis Trading pointed out the significance of the 12-hour exponential moving average (EMA), noting price has held it as support during this run-up. The asset now, however, appears to be finding the 12-hour EMA as resistance, failing to power through it and regain it as support, for the time being.
Bitcoin also dropped below the middle Bollinger Band and appears to be fighting it as resistance currently.
The bands also are narrowing slightly into a more steady range than seen during the breakout.
The hourly chart reveals bitcoin did not quite hit the line drawn on the weekly chart (about $5,375), which seemed to line up with the wick from autumn of 2017.
*This article is based on opinions, speculations and interpretations from the author and others, and is not in any way financial advice. Writing about price levels, charts, etc., is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever. Proceed only at your own risk.
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