The total crypto market cap has seen a huge increase this week and is hovering around $323 Billion already. This is after bouncing off a $250 Billion support level. Below I summarize TA on what we need to see next from bitcoin TA to confirm the bull market.
I tweeted a few days ago that the price needs to take down 0.728 fib ($7,200) to confirm upward movement and eventually it did blast through. The daily candle did close above the downtrend line and closed inside of a resistance zone. These signals are a good indication that bulls are back in the market. The first resistance zone will play a major role in where the price in heading next as we look for either a) consolidation or b) rejection.
bitcoin Daily Candle Chart
Generally when a reversal is in effect and confirmed, it’s more likely to hold support levels and break through resistance levels. An ideal support level to watch for re-entry can be found at 0.382 fib ($7,486) or 0.618 fib ($7,106).
bitcoin Weekly Candle Chart
On the weekly chart the price bounced from the 50 day moving average and didn’t pierce through it. Otherwise it would have continued in downtrend. Stoch has taken an oversold position and the last time it was this low was back in the 2016!
bitcoin Double Bottom Formation
Big Picture: . To continue moving higher it needs to break above the resistance zone, 50 day moving average and the daily candle needs to close above the daily pivot level. These are reliant signals for the trend continuation.
Conclusion
I have been writing in my past reports / tweets of slow recovery for bitcoin and signs of it. For example, uptrend line was never violated and moved closer to the peak where it began to form higher lows indicating that bears are getting exhausted and bulls are entering. It may take several days or even weeks before reversal does occur, but signals are very visible!
Where do YOU think the price will be heading in this week? Share your thoughts down below!
DISCLAIMER:
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing anything.
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