Technical Analysis
Bitcoin showed us again who is the boss in this business, it rallied almost 30% within one week, still without a major correction.
As we can see in the chart it has hit a resistance level at almost 6000 USD. The coin now reached the overbought readings on all timeframes. However, there is still a chance for a continuation of the rally, I will explain that by using the current market situation.
Now it is important for traders to watch the market closely. A minor correction has been initiated this morning starting from the 5740 USD level, right at the 34th vertical fib line on 1H (just as expected in my last analysis). Now BTC's price needs to hold the crutial support area between 5500 USD and 5400 USD. In this case a contiuation of the rally could be expected with a target of ~6500 USD.
Decision Area:
5500 USD - 5400 USD
Target:
~6500 USD
On the other hand, if the price breaks the 5400 USD level we can expect a further downward movement to the support levels that have been formed during the last week.
Support Levels:
5000 USD
4650 USD
4400 USD
The longterm picture still looks VERY encouraging. Since BTC's market can unexpectedly turn volatile in both directions, shorting could be a bad idea without a tight stop-loss.
Chart symmetry and harmonic wave analysis leads to a downward target between 5000 USD and 4650 USD which would be a nice discount price to enter new positions on our journey to the moon :). In this case, the price would bounce from the 200 SMA .
Pullback Target:
5000 USD
Analysis is based on Bitfinex Data.
Market Situation
As mentioned before there are no real technical parameters that support a contiuation of the rally, but there are some very important market factors that could help prices to climb higher again.
Bitcoin’s gains followed speculation that China would soon ease trading restrictions on cryptocurrency. An announcement by Coinbase that it was introducing an ‘instant buy’ program for U.S. traders also seemed to support bitcoin’s cause on Friday. The U.S.-based digital currency exchange has more than 11 million members.
Russia’s stance on cryptocurrency appears to have softened after a top central banker signaled for the closure of online bitcoin exchanges. High level talks between Kremlin officials and the business community have convinced President Vladimir Putin and central bank chief Elvira Nabiullina to pursue a regulatory framework instead of an all-out ban.
As always you have to make your own research and decisions. I would definitely take some chips from the table and keep only smaller positions running to fight the fear of missing out.
Thank you everyone for your support. I really appriciate this and wil try to give you correct analysis regularly.
Bitcoin showed us again who is the boss in this business, it rallied almost 30% within one week, still without a major correction.
As we can see in the chart it has hit a resistance level at almost 6000 USD. The coin now reached the overbought readings on all timeframes. However, there is still a chance for a continuation of the rally, I will explain that by using the current market situation.
Now it is important for traders to watch the market closely. A minor correction has been initiated this morning starting from the 5740 USD level, right at the 34th vertical fib line on 1H (just as expected in my last analysis). Now BTC's price needs to hold the crutial support area between 5500 USD and 5400 USD. In this case a contiuation of the rally could be expected with a target of ~6500 USD.
Decision Area:
5500 USD - 5400 USD
Target:
~6500 USD
On the other hand, if the price breaks the 5400 USD level we can expect a further downward movement to the support levels that have been formed during the last week.
Support Levels:
5000 USD
4650 USD
4400 USD
The longterm picture still looks VERY encouraging. Since BTC's market can unexpectedly turn volatile in both directions, shorting could be a bad idea without a tight stop-loss.
Chart symmetry and harmonic wave analysis leads to a downward target between 5000 USD and 4650 USD which would be a nice discount price to enter new positions on our journey to the moon :). In this case, the price would bounce from the 200 SMA .
Pullback Target:
5000 USD
Analysis is based on Bitfinex Data.
Market Situation
As mentioned before there are no real technical parameters that support a contiuation of the rally, but there are some very important market factors that could help prices to climb higher again.
Bitcoin’s gains followed speculation that China would soon ease trading restrictions on cryptocurrency. An announcement by Coinbase that it was introducing an ‘instant buy’ program for U.S. traders also seemed to support bitcoin’s cause on Friday. The U.S.-based digital currency exchange has more than 11 million members.
Russia’s stance on cryptocurrency appears to have softened after a top central banker signaled for the closure of online bitcoin exchanges. High level talks between Kremlin officials and the business community have convinced President Vladimir Putin and central bank chief Elvira Nabiullina to pursue a regulatory framework instead of an all-out ban.
As always you have to make your own research and decisions. I would definitely take some chips from the table and keep only smaller positions running to fight the fear of missing out.
Thank you everyone for your support. I really appriciate this and wil try to give you correct analysis regularly.