$BTC - Bulls consolidating previous increases
Key levels
Short term
Supports—> S1: 11,100 & S2: 10,000
Resistances—> R1: 13,000 & R2: 13,500
Medium term
Supports—> S3: 8,900 & S4: 7,600
Resistances—> R3: 14,000 & R4: 15,000
Potential scenario
During the last week, bulls took over again with increases of around 30%, from $10,000 to $13,000. Once the Bitcoin reached $13,000, it performed a quick correction of 15% of the price, bouncing on the support S1 at $11,000. These type of corrections are interpreted as healthy retracements that consolidate previous price increases. The last maximum at $13,000 is above the previous one, which reduces the probabilities of having a bearish trend.
TA comment
In order to find entry points for the current market conditions, we are making use of the Chaiking A/D Oscillator. This is a momentum indicator that combines volume and the accumulation/distribution line to create buy and sell signals. As we can see in the chart, the indicator pinpoints quickly increases in volume and A/D line, which normally leads to price increases.
Pattern
As previously commented, the price created the new resistance R1 at $13,000 and afterward fell quickly to $11,000. This quick decrease in the Bitcoin price was performed with very clear bearish engulfing patterns. It is a bearish reversal pattern represented by two candles. The second candle totally engulfs the first one and starts a downward movement, then sending sell signals when the price is very likely to go down.
Short term
Supports—> S1: 11,100 & S2: 10,000
Resistances—> R1: 13,000 & R2: 13,500
Medium term
Supports—> S3: 8,900 & S4: 7,600
Resistances—> R3: 14,000 & R4: 15,000
Potential scenario
During the last week, bulls took over again with increases of around 30%, from $10,000 to $13,000. Once the Bitcoin reached $13,000, it performed a quick correction of 15% of the price, bouncing on the support S1 at $11,000. These type of corrections are interpreted as healthy retracements that consolidate previous price increases. The last maximum at $13,000 is above the previous one, which reduces the probabilities of having a bearish trend.
TA comment
In order to find entry points for the current market conditions, we are making use of the Chaiking A/D Oscillator. This is a momentum indicator that combines volume and the accumulation/distribution line to create buy and sell signals. As we can see in the chart, the indicator pinpoints quickly increases in volume and A/D line, which normally leads to price increases.
Pattern
As previously commented, the price created the new resistance R1 at $13,000 and afterward fell quickly to $11,000. This quick decrease in the Bitcoin price was performed with very clear bearish engulfing patterns. It is a bearish reversal pattern represented by two candles. The second candle totally engulfs the first one and starts a downward movement, then sending sell signals when the price is very likely to go down.
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