Note: This analysis can be found here
With this being our first official Bitcoin analysis on the website, it's important to recap on our previous analysis and prediction in the Telegram channel before giving today's analysis.
We noted in our Telegram analysis that Bitcoin was poised for upward movement as bears got exhausted. Contrary to the major market expectation of Bitcoin revisiting the $5,000 lows, we saw a hidden strength as we looked at the Weekly, Daily, 4 hour, and 30 minutes time frames. Bitcoin has had three total push down and according to our analysis the third is mostly the spring board to see higher prices if the surrounding conditions are right and that's what we saw. Now unto today's analysis.
A Bullish Comeback
Bitcoin/US Dollar (BTC/USD) is currently trading at $6,436 which is a crucial point for the cryptocurrency pair. After a weak but necessary breakout to $6,800 bears brought price down again to $6,080. This was the exhaustion phase for the bears which would pave way for bulls to take over, and it seems we're about to see that fulfilled.
View chart here
Two targets (resistances) are in view and crossing them will confirm bulls take over leading us to our initial target of $8,000. We have $6,400 and $6,446. After these are taken out, the pair should see market participants come into the market to push price up. After this we'll have a day's close above $6,400 and then a base can be built and momentum gathered to see higher prices.
The RSI is almost at the tip of the band on the 3 hour time frame so a cool off is expected after Bitcoin breaks the said targets/resistances.
We believe starting from here will be an interesting upward movement for Bitcoin against the US Dollar.
With this being our first official Bitcoin analysis on the website, it's important to recap on our previous analysis and prediction in the Telegram channel before giving today's analysis.
We noted in our Telegram analysis that Bitcoin was poised for upward movement as bears got exhausted. Contrary to the major market expectation of Bitcoin revisiting the $5,000 lows, we saw a hidden strength as we looked at the Weekly, Daily, 4 hour, and 30 minutes time frames. Bitcoin has had three total push down and according to our analysis the third is mostly the spring board to see higher prices if the surrounding conditions are right and that's what we saw. Now unto today's analysis.
A Bullish Comeback
Bitcoin/US Dollar (BTC/USD) is currently trading at $6,436 which is a crucial point for the cryptocurrency pair. After a weak but necessary breakout to $6,800 bears brought price down again to $6,080. This was the exhaustion phase for the bears which would pave way for bulls to take over, and it seems we're about to see that fulfilled.
View chart here
Two targets (resistances) are in view and crossing them will confirm bulls take over leading us to our initial target of $8,000. We have $6,400 and $6,446. After these are taken out, the pair should see market participants come into the market to push price up. After this we'll have a day's close above $6,400 and then a base can be built and momentum gathered to see higher prices.
The RSI is almost at the tip of the band on the 3 hour time frame so a cool off is expected after Bitcoin breaks the said targets/resistances.
We believe starting from here will be an interesting upward movement for Bitcoin against the US Dollar.
Bitcoin is currently trading above $6,300 as of this writing. In our previous analysis we highlighted how we expected the hidden bull strength of Bitcoin to take effect and that's exactly what happened contrary to the major bearish sentiment. Our two targets/resistances at $6,400 and $6,446 were effectively taken out and that confirmed a bullish run for Bitcoin and as we said in our analysis, this hints our reaching $8,000 target.
We also mentioned the cool off phase that we expected on the RSI after we broke the targets/resistances. A cool off phase is necessary to inspire another rally and Bitcoin on the 30 minutes chart cooled off above 45 point on the RSI which is a bullish zone, shows there is still bullish momentum. As everyone thought there'll be a huge correction, Bitcoin took off again.
View chart here
Now we're even more bullish on Bitcoin because of some new developments we were expecting to happen after this rally over $7,100. Let's look at them.
Our two green arrows on the 4 hour chart below is our channel to $8,000. We're expecting Bitcoin to stay within this path/channel and eventually break it to the upside, bears will not be able to take this channel down or break below it. We forecast bulls to aggressively defend it if bears try. There is something interesting that supports this claim of ours.
View chart here
Looking at the 4 hour chart again but now in a bigger way, we see that the RSI is in extreme over bought position. Take a closer look and you'll realize this is actually a good thing because Bitcoin has been in an uptrend anytime the RSI reached that point. The white line drawn confirms this. We believe a cool off is expected but it'll be just to ignite another bull run. The uptrend and reversal has already began.
Also we have our first downtrend resistance line in scope. In our first Telegram analysis we noted how a break of this line will happen around $8,000 price. It seems that is still in progress to be fulfilled. We forecast that momentum will be gained to see $10,000 when 48 hours close above that trend line happens.
View chart here
All setups and indications still point to Bitcoin moving up in price. A test of the $8,000 resistance is soon and we'll break through since according to our analysis the break will happen on good volume and good RSI rising position. Before $8,000 is broken, bears will be exhausted more as all their sells are absorbed by the bulls. This will push the RSI down a bit and then ignite a strong comeback from the bulls.