BTC - Massive Weekly Volatility Coming
Hello Traders. Today I have an amazing chart to share with you outlining Bitcoin's price on the weekly timeframe. We will discuss Bitcoin's weekly parallel channel, weekly RSI, and weekly Historical Volatility.
Lets begin with Bitcoin's weekly parallel channel. This has been an incredible metric of macro support and resistance as BTC started its 2022 bear market. The heartline of this channel has also marked key support/resistance flips. Right now we notice price is still being held down by the top of the channel. Once we see a weekly candle close above this channel we will see a very quick move as high as 50,000. Another thing to note is our 20 and 200 Moving average on the weekly timeframe is supporting price. With the trajectory of these moving averages, they should help push BTC's price out of the channel within the next couple weeks. The only way these moving averages become negated is if we close a weekly candle below them.
The second thing to note is the weekly RSI. We have a very key level at 59. This acted as a rejection point twice (red arrows) before breaking above, getting rejected at overbought (70) retesting it as support (green arrow) and now currently holding it as resistance again (red arrow). Best case scenario is we close above this level by Sunday. If we are able to get back above, that should give BTC the momentum to break above 70 and really start a parabolic move to the upside.
The final thing is the the HV (Historical Volatility). I have the 35 level outlined and have orange circles drawn every time volatility levels dip that low. As you can see by the orange circles in the chart, there is always a large volatile move up or down after reaching these levels. We are currently at the 35 level again and should be expecting a huge move for BTC very soon.
I will be posting a monthly chart for BTC very soon. Stay Tuned.
Lets begin with Bitcoin's weekly parallel channel. This has been an incredible metric of macro support and resistance as BTC started its 2022 bear market. The heartline of this channel has also marked key support/resistance flips. Right now we notice price is still being held down by the top of the channel. Once we see a weekly candle close above this channel we will see a very quick move as high as 50,000. Another thing to note is our 20 and 200 Moving average on the weekly timeframe is supporting price. With the trajectory of these moving averages, they should help push BTC's price out of the channel within the next couple weeks. The only way these moving averages become negated is if we close a weekly candle below them.
The second thing to note is the weekly RSI. We have a very key level at 59. This acted as a rejection point twice (red arrows) before breaking above, getting rejected at overbought (70) retesting it as support (green arrow) and now currently holding it as resistance again (red arrow). Best case scenario is we close above this level by Sunday. If we are able to get back above, that should give BTC the momentum to break above 70 and really start a parabolic move to the upside.
The final thing is the the HV (Historical Volatility). I have the 35 level outlined and have orange circles drawn every time volatility levels dip that low. As you can see by the orange circles in the chart, there is always a large volatile move up or down after reaching these levels. We are currently at the 35 level again and should be expecting a huge move for BTC very soon.
I will be posting a monthly chart for BTC very soon. Stay Tuned.
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