Bitcoin Bullish Sentiment Continues (What Will Happen Next?)Bitcoin has been following TA and going up as expected. After we hit bottom last month, Bitcoin has been on a ride and getting stronger by the day.
We've seen many attempts at breakout in the past but none of them were supported by enough volume, lately volume has been getting better and it furthers confirms all the signals we are getting from the charts.
There are quite a few signals to look at, so let's see what is up with Bitcoin and what comes next!
Bitcoin Analysis by Alan Masters
CHARTS, SIGNALS & INDICATORS
- We are now trading above the $7,800 price level, which we can see marked with a brown line on the chart, that's EMA200. Bitcoin hasn't traded above this line since 11th May 2018, so breaking above it is a great signal, we now need only to maintain it on the daily and weekly time frames (on the weekly this same price level is marked by EMA20) to signal additional bullish strength.
- We are on an uptrend (dotted green line).
- After months of bullish divergence, the MACD keeps on trending up now finally on the bullish side, but needs a bit more momentum to feel strong... a bit more momentum is needed for us, but slowly steady growth is what we expected from the start.
- The MACD is looking to have a bullish crossed over on the weekly time frame, this is good as well.
- Looking again at the daily time frame, the RSI is on the bullish side and shows room available for additional growth. STOCH is also bullish as well as ADX and DMI.
- We are getting signals and breaking resistance levels that we haven't break in a while. With a very strong bullish crossover of EMA10 and EMA50, Bitcoin is pointing for a bullish week and possibly even more bullish action. Just remember that each time a resistance level is broken, we need to retrace and consolidate, to load up for more. So remain calm when you see that Bitcoin goes slow. Only if it goes down strong and closes below support, we analysis and change/update our view as required to know where Bitcoin will go now next.
In the meantime... Bitcoin is Bullish and will continue going UP!
(Support = $7,000, $7200, 7400)
(Resistance = $8,000 - $8,200)
Few more notes:
- Biggest volume since April, weekly chart.
- Good volume on the daily.
- Short term, mid term and long term. Which term are you looking at? This is important when looking for future movements of Bitcoin, as the trend can change based on the time frame you are looking at.
- $8280+ close on the weekly is where we look for a new strong support, this needs to be broken and close above it on the weekly if we want to continue the bullish bias for even more bullish action... We can close weekly below it and still continue bullish, it all depends on how we interact with resistance and support levels... But remember, we start with $7600, which we broke already, after we get to $7800 and $8000 which we are challenging now.
- Just as you need to break $8,000 before you can reach above $8,200+ for a new strong support, you need to break $6000 before you can reach $5750, and break $4000, $3000, etc. before you can other lows. So dear bears do not worry about Bitcoin going to $1,000, just as my loved bull shouldn't worry about $20k, we have to go through many different levels, before we can get there.
Namaste.
P.S. Please come back to this thread again and again, like, share, comment... since I will be sharing many more updates.
