Bitcoin Weekly Chart

When the price bounced from SMA50 and broke the downtrend line, we got a signal confirming the continuation of the uptrend. The correction was over and we could expect that bulls would make a good upward wave. But the price could not break 10000.00 level and we saw a new downward movement. The market even dropped below SMA50, which was the good support line in the past. Now the price is at a very important zone.

For keeping the uptrend, the price must stay above the previous swing low and break the previous swing high at 10000.00 resistance level. If so, we’ll get higher highs and higher lows which will be a good confirmation for the uptrend.

If the price breaks below 6500.00 level, we should be ready to see the falling to the next support zone formed by 5000.00 support level and SMA100. Probably the price reversal from this zone will start a new uptrend on the daily time frame with the main target at 10000.00 level.

If we use the previous swing highs and lows, we can draw a pennant or triangle chart pattern. If the price breaks the support line of this pattern, it will give an additional signal confirming the market falling. If the price breaks the resistance line, the pattern will be confirmed as a reversal one and we’ll get an additional signal confirming further upward movement.