Bitcoin - Strong Bullish but It Means Nothing

If we look at the weekly chart of Bitcoin, we will see solid signals confirming the continuation of the main uptrend.

When the price bounced from SMA200, it gave us good buy opportunities based on different timeframes. We got the signals confirming the uptrend and the market made a good upward movement. If you missed those opportunities, it was easy to do as many experts wrote about further falling, now it's time to think about when to buy.

As we have trend market conditions, we have to follow the rules of trading in such market conditions. The best signals for joining to a trend are reversal signals after correction movements. As we have the impulse wave, we will have to wait for a correction and based on a reversal signal we should buy.

If we look at the indicators, they provide us solid bullish signals. MACD histogram supports buyers and the same goes about MACD lines. DMI is bullish with ADX line moving upward. It tells us that buyers become stronger and we have the trend market conditions.

We have the strong bullish signals but it means nothing now. The price is at the strong resistance zone where we should expect the reversal and further correction. I wrote about it in several posts and you can find these posts in the related ideas.

The resistance zone is strong and it can stop and reverse the price. The zone is formed by the strong resistance level 6000.00, SMA100 which acts now like a resistance line. This zone is good for bouncing and such movement will be absolutely logical in the bullish structure.

For the further upward movement the market will need strong fundamental news, but as far as I can see we don't have them right now. From this point of view, the market has the right time for the correction movement. Another bearish signal we will be able to get from RSI, which is not far from the overbought zone.

Will the market bounce from 6000.00 during this week or we will have an attempt to move higher and bounce from SMA100? Will it be during the several weeks? We will see. But the main idea of the post is - in spite of strong bullish signals, the correction movement will be more logical and it should be used for buying based on confirmed reversal signals.

And what do you think about the price movements during the nearest several weeks? Please, share your thoughts in comments! Let's discuss!

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By the way, today I will make the live stream - Market Overviews. I'm going to share more details about further market movements for Bitcoin and other markets. If you are interested, if you want to discuss - I will be glad if you join this stream. How to do it? You can find all information below my posts and in the status bar on my page.

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UPDATES! Please, get more information from the daily chart