Bitcoin – The Perfect Market Movements
Bitcoin / Dollar BITFINEX:BTCUSD
If the daily and hourly timeframes look bullish and tell us about the continuation of the upward movement, the weekly chart draws a little bit another picture. Let’s look at it closer and try to understand the possible market movements.
The market keeps the uptrend. We have higher highs and we need to get a higher lower for confirmation the uptrend. This higher low can be done at the uptrend line if the price bounces from this support. It’s the strong support zone formed by the trend line , SMA200 and 4000.00 level. We should expect for the correction to this zone with a further reversal and a continuation of the uptrend. All these movements will be logical in the bullish structure.
The other important thing we should note, the price action at the current levels. The previous week has the close price not far from the open price. The size of the weekly candle is not big. We have a doji candle which can be a reversal candlestick pattern if it’s formed at support or resistance zones. This type of candles tells us that sellers or buyers need some rest after a previous movement.
We had the good upward movement and the doji candle in such a pattern tells us that buyers need a rest. At the same time, sellers are not so strong for pushing the market lower. We have the market conditions where buyers are not so strong and the price is at the resistance zone . This zone is formed by SMA50, 5000.00 resistance level . Not far from this resistance we have another one at 6000.00 level which is really strong. Buyers don’t have the power to push the price higher and if so, the price can move sideways or downward. In both cases, we will have a correction movement. The market can make an attempt to reach 6000.00 resistance during this week, but after that, the market, probably, will bounce and move to the zone between 5000.00 and 4000.00 levels. This downward movement should be used for getting new buy opportunities on different timeframes.
If we look at the indicators they give us different signals. MACD supports the upward movement but RSI line reversed and started a downward movement. It gives a bearish signal. DMI is bullish and ADX line moves upward but it’s below 20 signals level. Buyers have some power but they are not so strong yet. So, probably they won’t be able to break strong resistance levels and move upward. The correction movement to the support, the reversal from this zone and the continuation of the uptrend – it looks like the perfect market movements for the nearest several weeks.
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Source: TW DLavrov