Bitcoin Interesting Signals from the Weekly Timeframe

As some authors of TradingView try to predict Inverse Head&Shoulders pattern, I would like to focus and share with you real signals from the market and indicators. This time we have a very interesting situation on the weekly time frame. The price bounced from the zone formed by 3000.00 and 3500.00 support levels, SMA with period 200 and the middle line of the descending price channel. These elements build a very strong support zone. It’s an amazing starting point for a new upward movement to the main line of the price channel at least.

Will it be a trend reversal? If we use the weekly time frame, for confirmation a trend reversal the price will have to break the price channel. Only after that we will be able to talk about a new possible uptrend. Now, it’s a correction movement. Buy signals from lower time frames should have profit targets at the main line of the price channel. Because this is a resistance zone where the market can be reversed and we will see the continuation of the downtrend. Only if your target is long term investing, the zone at the resistance line should be used for adding more trade volume to long position. This buying will be based on a breakout signal.

As for signals from indicators/oscillators:
RSI confirms a price reversal in the overbought zone
MACD histogram confirms a possible upward movement
MACD lines dropped too low and from these levels they will give a good confirmation for the upward movement
DMI is bullish and confirms the strength of bears. It’s only one strong signal confirming the further downward movement.

Also we have a reversal candlestick pattern which confirms that the price bounced from the support zone.
As for possible upward movements we have more solid signals based on the weekly and the daily time frames. In my opinion, we should not expect a strong upward run until we will get solid fundamental support.

However, I believe we can see a sideway movement or just a slight upward movement in January 2019.
The solid fundamental support I keep talking about should come from the news which would tell us about new opportunities for institutional traders in Bitcoin's trading. Specifically, If BAKKT will be launched in time as announced, this event will be able to push Bitcoin upward much faster and a new uptrend will begin.

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DMI is bearish but not bullish)

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