Is Bitcoin About To Explore A New Range?
Updated
If you recall, I made a post back in April, calling for Bitcoin to reach $10-12k prices rather quickly. This happened, though the top cryptocurrency has surely taken its time. Here's the original post:
I'm mostly putting this chart here for future reference. No in-depth analysis this time. The last time Bitcoin closed a daily candle higher than $12920 on Bitstamp was on January 15th, 2018. If it closes above soon, it provides a setup for big daddy to head straight up to the next major resistance level, near 17.2k. In doing so, Bitcoin would be exploring prices not seen since the peak of the previous bubble. Interestingly, 17.2k also aligns with the previously broken long term uptrend, which you can just barely see in faded purple on the above chart. I will bring back the opacity if that trendline becomes relevant again.
There is not much historical trading action at these high prices, so I'm curious to see how the market reacts. As for downside, I'd watch for sell volume and a rejection that takes prices quickly back below 11k. This would be a more bearish signal, and could even portend a drop towards the 200w MA one more time. For now, things look fairly bullish.
This is not financial advice! This is meant for speculation, education, and entertainment only!
-Victor Cobra
I'm mostly putting this chart here for future reference. No in-depth analysis this time. The last time Bitcoin closed a daily candle higher than $12920 on Bitstamp was on January 15th, 2018. If it closes above soon, it provides a setup for big daddy to head straight up to the next major resistance level, near 17.2k. In doing so, Bitcoin would be exploring prices not seen since the peak of the previous bubble. Interestingly, 17.2k also aligns with the previously broken long term uptrend, which you can just barely see in faded purple on the above chart. I will bring back the opacity if that trendline becomes relevant again.
There is not much historical trading action at these high prices, so I'm curious to see how the market reacts. As for downside, I'd watch for sell volume and a rejection that takes prices quickly back below 11k. This would be a more bearish signal, and could even portend a drop towards the 200w MA one more time. For now, things look fairly bullish.
This is not financial advice! This is meant for speculation, education, and entertainment only!
-Victor Cobra
Note
This level is already strong short term resistance. I expect some relatively strong defense by sellers, but again, if Bitcoin can close above 12920, or even 13k, I think that opens up the field for much higher prices.Note
Note
Bitcoin is now working on 2019 highs, but has already closed a number of daily candles above 12920. Looks fairly good. What I want to see (for the health of the crypto market) is for alts to start getting lifted up soon. Doesn't have to happen right now, but Dominance is getting close to some long term monthly resistance. In fact, it's right up against the 9 month EMA (orange).
Note
Looks good. Butting up against 15k now. Possible we see a blowoff towards 17.2, but Bitcoin is in a new range. Can chop around even with some downside towards the 12k zone. We'll see.Note
Amazing how close Bitcoin is to the main target in this analysis (17.2K). Let's see if it hits. It's looking fairly overextended right now, and Bitcoin dominance is putting in a lower high with Bitcoin making a higher high. I do expect sellers to start taking control between here and ATH, so I would be careful with long positions and always set stops in profit :) Note
Just like that, 17.2k! It'll be interesting to see if Bitcoin heads straight to ATH test here. That would mean we are further along in the market cycle than I projected, and I will have to revise my outlook a bit.Note
Otherwise, this is where I would finally expect some more substantial profit-taking. Let's see.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.