Loading

wait a moment

A Huge Week for Bitcoin – Outlook Has Changed From Bearish to Bullish

bitcoin social trading

EOS 1hr

As the week approaches its end, it has been an important one for the price of Bitcoin. At the start of the week, $6850 was an important resistance level which looked unlikely to be broken after multiple attempts. The longer term pattern was still in a downtrend forming lower lows and lower highs. But the 10% move up early in the week broke this pattern and may signal the start of a long-awaited bull market.

2018 has been a tough year for traders pushing many weak hands out of the market. With a slow-down in the drop and some price appreciations, we seem to be approaching the point in the crypto markets where the strong hands are refusing to sell. On the daily chart, we are currently meeting some resistance at the 100EMA. The current downward movement is on low volume and a retest to trade above the 100EMA seems likely coming in to next week.

Bitcoin Daily

We can see on the 4-hour chart that the price has been trading in a range between $7250 to $7500. It is typical to trade in a range over the weekends when there is a lower trading volume in the markets. In the case of a move to the downside, analysts predict support should be around the $7100 mark. This is the point where the 4-hour 50EMA is approaching. The bull flag pattern is still in play as we continue to trade sideways. For the bull flag pattern to break out, the price would have to break through resistance at $7550, and further resistance is to be expected at $7850.

Bitcoin 4hr

The hourly chart tells the same tale as the 4-hour with trading occurring within a tight range and volume minuscule since the weekend has kicked off. As the West Coast wakes up in the United States, it is possible we will see some extra volume come into the markets over the next few hours. The price is currently trading above the 50, 100, & 200EMA on the hourly chart.

Bitcoin 1hr Chart

Key Takeaways:

  • A Bull Flag Pattern still in play. A breakout would require the price to gain enough pressure to move through resistance at $7550. In the event of this happening, the next resistance level is expected at $7850.
  • In the event of a move to the downside, analysts predict support at $7100. This is the point where the 4-hour 50EMA is approaching.
  • The price is currently ranging on low volume between $7250 and $7500. As the West Coast in the United States wakes up, it is possible we could see some extra volume come into the markets.
DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.

A Huge Week for Bitcoin – Outlook Has Changed From Bearish to Bullish was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.