Hello! Here is my Bitcoin' weekly forecast! Hopefully, You like this and hopefully, it helps to confirm your own analysis!
Let's start from the weekly chart:
Last week Bitcoin' made a big movement. From the volume perspective, not the highest week but from the price range perspective definitely one of the highest weeks till April (from low to high ~$1,370). Currently, the price trades above the major down-trendline which is the most important criteria. It shows that we have broken the down-trendline and ready to go to the higher prices. The second important price action criterion is the red line - curve support. At the moment, the price is under the curve support but this criterion is pretty subjective to make any bigger assumption.
If we look at this chart, then we could see that we have a candlestick pattern. From my viewpoint, this is a bullish pattern called "Inverted Hammer". The inverted hammer is a type of candlestick pattern found after a downtrend and it is usually taken to be a trend-reversal signal. If this pattern occurred on the uptrend then it would be a bearish pattern called "Shooting Star" but currently, it is on the down-trend bottom and we can call it inverted hammer which will indicate that in this week, we could see a movement upwards but let's try to break it down on the lower timeframes.
The Daily chart:
Now the chart goes a little bit messier but You have to try to bear with me. On the daily time frame, You can see that after the massive rally upwards and after the major down-trendline breakout the price game pretty quickly down and on Friday it made a trendline retest. After the retest, the Bitcoin' price has made a slow and steady climb upwards to the minor trendline which is now working as a resistance. It tried to make a breakout above the trendline yesterday but got rejected and currently, it tries again, which is a good sign because it shows that the buyers still want to see higher prices.
Let's look at this a little bit deeper into the four-hour time frame. First thing what we discover is the 100 and 200 EMA which work currently as a strong support level because they are almost on the same price level. Last four-hour candle close gave us "Dragonfly Doji" which will indicate that the price will go higher - the price got rejected from EMA's and it formed a bullish candlestick pattern.
Now, if the four-hour candle closes like this then it would be another candlestick pattern "Morning Star". Morning star consists of three candles and it is a bullish candlestick pattern, currently, it has nice support and if the close happens as I've mentioned then it would be a good indication that we can break the minor trendline and after that some higher levels.
Higher levels resistances:
1. After the minor trendline break, the price has to fight with the major counter-trendline which is pulled from September 8. After the breakout downwards, last Thursday, it starts to work as a resistance.
2. As I've said it before then the major resistance is the blue line at $6,767. This is the main area where we have to watch what the price action offers to us and can we break above that level because this blue line is the most important resistance if we want to see a bullish week from BTC', we just have to take down that resistance. Until we trade below the blue line it is a little bit unclear, where we might go so, definitely watch that level. Steps to the $6,767 - we have to break the minor trendline, we have to break the major counter-trendline and then we are aforementioned price level, the first target after the blue line breakout is around $6,900-$7,000. The road to there is not easy but definitely doable (remember the "Inverted Hammer" candlestick pattern on the weekly time frame)
Lower levels supports:
1. If we can't find that power to go upwards from EMA's and we fall below those, then the first support is the round number $6,500
2. Not far from round number is the major down-trendline which still works as a support and if You want to participate this into your charts then draw it precisely from the wicks since March 5.
3. The strong support (blue line) at $6,460.
Those three supports makes almost a very strong crossing area which is hard to beat and if You see a candle close (at least four-hour candle) below the last support then stay away from the market because there we could see a big movement.
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Let's start from the weekly chart:
If we look at this chart, then we could see that we have a candlestick pattern. From my viewpoint, this is a bullish pattern called "Inverted Hammer". The inverted hammer is a type of candlestick pattern found after a downtrend and it is usually taken to be a trend-reversal signal. If this pattern occurred on the uptrend then it would be a bearish pattern called "Shooting Star" but currently, it is on the down-trend bottom and we can call it inverted hammer which will indicate that in this week, we could see a movement upwards but let's try to break it down on the lower timeframes.
The Daily chart:
Let's look at this a little bit deeper into the four-hour time frame. First thing what we discover is the 100 and 200 EMA which work currently as a strong support level because they are almost on the same price level. Last four-hour candle close gave us "Dragonfly Doji" which will indicate that the price will go higher - the price got rejected from EMA's and it formed a bullish candlestick pattern.
Now, if the four-hour candle closes like this then it would be another candlestick pattern "Morning Star". Morning star consists of three candles and it is a bullish candlestick pattern, currently, it has nice support and if the close happens as I've mentioned then it would be a good indication that we can break the minor trendline and after that some higher levels.
Higher levels resistances:
1. After the minor trendline break, the price has to fight with the major counter-trendline which is pulled from September 8. After the breakout downwards, last Thursday, it starts to work as a resistance.
2. As I've said it before then the major resistance is the blue line at $6,767. This is the main area where we have to watch what the price action offers to us and can we break above that level because this blue line is the most important resistance if we want to see a bullish week from BTC', we just have to take down that resistance. Until we trade below the blue line it is a little bit unclear, where we might go so, definitely watch that level. Steps to the $6,767 - we have to break the minor trendline, we have to break the major counter-trendline and then we are aforementioned price level, the first target after the blue line breakout is around $6,900-$7,000. The road to there is not easy but definitely doable (remember the "Inverted Hammer" candlestick pattern on the weekly time frame)
Lower levels supports:
1. If we can't find that power to go upwards from EMA's and we fall below those, then the first support is the round number $6,500
2. Not far from round number is the major down-trendline which still works as a support and if You want to participate this into your charts then draw it precisely from the wicks since March 5.
3. The strong support (blue line) at $6,460.
Those three supports makes almost a very strong crossing area which is hard to beat and if You see a candle close (at least four-hour candle) below the last support then stay away from the market because there we could see a big movement.
If You appreciate my work then hit the LIKE button!
I need Your support and thank You for that!
Also, leave a comment with Your thoughts and feedback!
If You want to see the altcoins reviews, then visit "CryptoComes" profile in the TradingView and do not hesitate to follow it!
Have a wonderful week!
At the moment I'm out of the market and I wait for the bounce from the strong crossing area if the price continues to fall down. There I start to watch lower time frames price action and I try to keep You posted if the price reaches into the mentioned level at $6,460-$6,500!
Never forget to hit the LIKE button if You appreciate this ;)