Hello everyone.
This is my first ever post. I take a look at the weekly bitcoin chart and discuss why I think that the market will go down.
BEARISH
Signs
-the chart bounced back of the 3-year resistance, which is usually followed by a big dump.
- The stochastic indicator is overbought and you can see a similar pattern forming as the one right before the big dump of February-March.
-The volume is decreasing while the chart is going up (divergence).
Targets
If the bitcoin can’t break the 3year resistance, I think it will go down. The first real support lies on the 0.236 fib line around $7100. The second resistance is on the 3year support level on $5500.
BULLISH
Signs
I don’t think the bitcoin will rise but just in case:
On the bullish side of things there aren't much positive signs. BTC needs to break the 3year resistance first and have a weekly close above it.
Targets
If the BTC manages to break the 3year resistance it has to break the $10500 level. The next big resistance lies around $11500. Maybe we could even see BTC testing the golden pocket again.
I hope this was a clear analysis of the BTC-chart.