With Bitcoin worth having made such impressive gains to date in 2019, let’s have a look to see what’s more likely to occur subsequent.
Bitcoin Price: Weekly Chart
Bitcoin worth zerozero closed the week at $5162 having established new 2019 highs at $5478. This marked the top of a seventh consecutive inexperienced candle win streak, closing out on a spinning prime doji – an indecision candle.
The weekly chart exhibits that the worth of bitcoin is at present being held down by the declining 50 week transferring common. Interestingly, that is precisely what additionally occurred in the course of the finish of the 2015 bear market.
Despite the weekly inexperienced candle streak failing, the MACD histogram has accomplished its tenth weekly larger excessive, illustrating the power of the emergin bullish pattern inside this bear market. The MACD line itself is now additionally threatening to interrupt above its zero line, which is can be for the primary time since October 2015.
The On stability quantity indicator, which plots a mixed cumulative quantity and worth path, additionally exhibits a powerful get away of the downward pattern and confirms the 2019 pattern is supported by sturdy shopping for curiosity within the $3000 worth vary.
2015 vs. 2019 Bitcoin Price
Looking again on the 2019 and 2015 bitcoin worth charts, it clearly emphasises that the state of affairs could be very comparable – the 200 WMA has acted as help and following a powerful get away to the upside, the 50 WMA has instantly acted as a roadblock.
It would subsequently appear doubtless that BTC/USD might want to at the very least backtest the $4100 breakout degree, if not the quickly rising 200 WMA, which is now north of $3500.
However, the primary distinction between 2015 and 2019 is that there was a big break within the quantity pattern to the upside as talked about earlier, which didn’t come till later within the 2015 bear market.
Combining this with the truth that altcoins akin to Litecoin (LTC) seem like correcting faster than final time, might counsel backtest for Bitcoin might become a quick occasion if it happens in any respect.
The Four-hour bitcoin worth chart paints an image of indecisiveness. Generally talking bitcoin worth continues to construct upward momentum after discovering help over the weekend on the $5,000 degree.
This would be the key degree to defend early in firstly of this week. Should the $5k degree maintain, and BTC can progress in the direction of $5250 and $5300, there’s a cheap likelihood that it’ll press on in the direction of $5900, with the present worth motion being a considerably messy ascending triangle.
If the shopping for stress within the decrease $5ks can’t be maintained, BTC doesn’t have an enormous quantity of buying and selling historical past within the $4000s, which may imply that we see bitcoin shortly break down from a head and shoulders prime. In this state of affairs, $4000-$4500 would more likely to be the following cease.
Golden Cross in Sight
Bitcoin worth continues to indicate power on larger timeframes and is on target to make a golden cross on the 50-200 day transferring common, earlier than the top of April.
With sturdy shopping for quantity witnessed within the break from the $three,000s, it might be cheap to imagine that any correction again to the $Four,000s may very well be quick lived and a close to time period shut throughout $5350 on the day by day chart might indicate take a look at of the $6,000 deal with may very well be within the playing cards earlier than the top of Q2 2019, if not the top of April.
Trade Bitcoin (BTC), Litecoin (LTC) and different cryptocurrencies on on-line Bitcoin foreign exchange dealer platform evolve.markets.
The views and opinions of the author shouldn’t be misconstrued as monetary recommendation. For disclosure, the author holds Bitcoin on the time of writing.
Images courtesy of Shutterstock, Tradingview.com