The weekly chart looks very nice for Bitcoin
and it shows great potential for upward movement. In the previous post about BTC
based on the weekly timeframe
I wrote that the most important zone was at SMA100 and 5000.00 level. This zone still stays more logical for a trend reversal and as a starting point for a new uptrend. But we can see that the price reversed from 6000.00 level and moved upward. It was not too far from 5000.00 level, but still, the market could drop lower. Another important signal we have to note, it's bullish divergence
formed by the price and MACD
histogram. It gives us a trend reversal signal. Also the price broke the downtrend line and it can be considered as a confirmation that the correction movement is over. The market continues the main uptrend and the 1st target is 10000.00 resistance level
. We will need a breakout and making a new swing high above the previous one. It will confirm the uptrend if we use Higher Highs and Higher Lows method. Of course for this model the market will have to make new swing low not lower than 6500.00 support level
If we look at the indicators, we get following signals:
confirms the price reversal from 6500.00 support level
histogram confirms the upward movement
lines are going to support the upward movement
- DMI becomes bullish
line still falls. For confirmation a strong upward movement and trend market conditions we will need to wait when ADX
line rises above 20 level.
So, based on the weekly timeframe
the market looks very interesting in long term. It's bullish
and it has great potential for upward movement. Will this potential be realized? We'll see, it will depend on who or what will act against Bitcoin
and this new uptrend. Whales, manipulators, hackers, governments, fundamental news or may be something else? What do you think about it, please, share in comments!
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