This week has not started very positively. After a dip on Monday, the price recovered slightly to just below $17,000. What can we expect from Bitcoin in the coming days?
This level should restore bitcoin
To analyze the price of Bitcoin, we first use the well-known weekly chart. Each candle represents 1 week. This is used to predict the long term price as there is a lot of information in one candlestick. It is also better to look from large (weekly) periods to small (4 hours) periods. After all, the long-term price contains more information than the short-term price.
Looking at this, we see three key zones (blue) that we’ve covered several times. You can see here that the price hit the mid blue zone last week, but the sellers took control at this point. As I mentioned in last week’s analysis, this level had to be recaptured to continue higher. Unfortunately, the price lagged behind this and Bitcoin crashed.
bass bass ready
In the same analysis last week, I talked about a positive scenario that could still come true. Bitcoin did not need to reach a new low for this. This just happened and to demonstrate this we took the 4-hour chart.
Price is below the blue zone where bitcoin bounced. This is usually a bad sign, as there were more sellers than buyers at such an important point. It also remained exciting whether Bitcoin would stay far below $16,678 (lower orange line). That did not happen, but the damage was limited.
To really get a little positive, it would be nice to see Bitcoin make another attempt to enter the blue zone. The important thing here is that there is a candle above the last high (where bitcoin was rejected). This is shown as the top orange line with a price of $18,199.
Will the price go up?
If bitcoin manages to overcome this, it will be a celebration if it also fully restores the blue zone. In that case, Bitcoin will leave a good support as it falls from here. Unfortunately, there’s not much reason to see this at the moment, but it can always be hoped.
Until then, it is again important that Bitcoin does not make new lows. We prefer to see a period of sideways movement or of course an increase. Hopefully there will be more buyers than sellers around $18,000 next time.
Source: Btc Direct
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Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
