While the king of cryptocurrencies has been relatively calm in recent weeks, it has accompanied the euphoria that has gripped all markets. Technical focus.
Bitcoin – Weekly Chart: Still Little Change
The weekly chart provides very little information. Prices remain in a stable situation and appear to have little motivation to move forward.
A real recovery will be possible when the weekly Tenkan is broken on the upside. Either a return above the level of $21,700. This alarm signal will make it possible to restore the animal’s hair Bitcoin. That will open the door to a return to opposition this summer, to $25,000.
In terms of support, it still holds up just as well. Located at $18,900, the previous high in 2017 continues to protect prices from a continuation of the downtrend. Note, in case of breach of this key level, it will be necessary to consider $15,900 as the next key support. This level is represented by a Fibonacci extension. As a last resort it will be the previous high in 2019located at $13,900…
Bitcoin – Daily Chart: An Attempt to Rebound Under Strong Resistance
When prices broke daily kijunwhich had blocked them for long weeks, they now encounter the daily cloud.
To confirm a technical rebound, Bitcoin must absolutely maintain the level of $19,330. To stay above this daily kijun. Otherwise, a return to the key support of $18,900 is a high probability.
As a bullish scenario is Bitcoin will have to integrate the daily cloud in order and break the bearish trendline to really get rid of strong resistances. This will be an upward opening of the cloud, which is represented by the short-term range, at $22,000. Moving on, if this level breaks, it will open the door to a return to $25,000.
This positive scenario will be possible provided that macroeconomic figures are not getting worse. Which would give strength to sellers who dragging the cryptocurrency market down since the end of this summer. Finally, it will be necessary to remain aware of quarterly company results. If they are bad, they risk adding fuel to the fire.
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