Bitcoin Price Analysis: Not As Bearish As You Think
Bitcoin was up to its trademark tricks late on Friday and early into Saturday with some particularly volatile moves. We take a look at the action and what it may mean moving into the weekly close.
Bitcoin (BTC) has been trading the week within a $200 range with lows of $3700 established on Monday and highs of $3900 tested on Wednesday. Since then, the bulls have been peppering the upper $3800 range and have looked, generally, in control of the price action.
4 Hour Chart
Late on Friday, the bears smacked the price back down to just beyond the middle of the week’s range, finding a low of £3760 (-3.5 percent), which was bought back up — pushing the price to new weekly highs. This sort of unusual price action tends to occur preceding a more definitive move.
The four-hour MACD is currently crossed bullish and trending above zero, which is in confluence with the stochastic RSI — which is also turned bullish. Combined with the general trend for the week being upward, the evidence at face value favors the bulls going into Saturday.
The weekly chart shows that the volatility at these levels may somewhat be explained by the declining long-term resistance being very close to the current price. This price action just below at the 100 and 50 WMA cross, while being supported by the 200 WMA, is very similar to that which occurred in 2015.
This took several months to resolve and ultimately led to a test of the declining 50WMA, which is currently declining from $6,000. It took 10 further weeks to test the 50 WMA following the cross under similar circumstances in 2015, which would take us to the end of April and somewhere in the $5,000 range. ...