With the logarithmic function applied to the weekly chart, we see multiple tests of this concave trend line which will eventually level and stabilise. Price managed to reject this trend line with strength, as shown by the +20% week.
The 200 period simple moving average was also approaching this trend line within a few percent of each other and price rejected the 200 SMA here also, this providing strong signs of strength in the market.
The stochastic indicator is almost about to cross over and revert momentum back to the upside, should the price
BTCUSD
close this week at this approximate price area of $4000. The 2017 bull market was not as extended as the 2013 bull market was, hence why a correction of the same magnitude is not expected as such. The deviation from this trend line, as seen in the charts above, was not as much compared to the 2013 bull market.
Doji Candles are forming on the monthly chart for
BTCUSD
and several other high market cap altcoins which suggests, at the very least, a green start to 2019. Comments and thoughts are highly encouraged. Merry Christmas and have a great 2019!
