Bitcoin’s price has remained exciting, fluttering in the low $5,000 range. However, the asset still faces possible tough resistance above. Let’s go to the charts!
Bitcoin appears to show strength on the weekly chart, holding gains from last week’s big green candle.
The 20-week moving average (MA) shows a noticeable turn upward, following price action, indicating a potential level of support in the event of a downturn. The 200-week MA also could prove to be a valuable level if price revisits those lower numbers.
Bitcoin has not yet tested the 50-week MA, or the $5,775 to $6,900 range of tough resistance. Market valuation also has not yet backtested the lower $4,000 range to check it as support after providing months of resistance.
Bitcoin’s daily chart appears to indicate resistance around the 300-day MA. The coin has not yet dropped back to the 200-day MA to test it as support, which may or may not happen any time soon.
The 50-day MA also looks to be curling upward, which could lead to a golden cross with the 200-day MA in the coming days. Earlier in 2019, Crypto Insider reported on Crypto Crew University’s video regarding a possible golden cross coming for bitcoin. Crypto Crew noted the occurrence of a golden cross for the asset back in 2015, and the subsequent bull run that ensued.
Bitcoin’s 4-hour chart shows interesting possible short-term trend action, interacting with the middle Bollinger Band as uptrend support. The bands have narrowed in comparison, potentially gearing up for increased volatility in the coming days.
Price also seems to have held close to the VWAP, currently displaying it as resistance.
Volume, in general, also looks to be lower than last week’s exuberant action.
Additionally, the asset seems to be forming some type of possible rising wedge in price, although the wedge is not shaping up as cleanly as would be preferable. Alternatively, the pattern could be shaping up as an ascending triangle with the white line of possible resistance above.
(*The current pattern shaping up is open to interpretation and easily influenced by bias.)
Price downturn or bearish action has been known to follow this type of rising wedge formation. Investopedia, in relation to a rising wedge, stated, “When a security’s price has been rising over time, trendlines drawn above and below the price chart pattern can converge to show a potential reversal point at a peak.”
The 50-day MA is following price, providing a potential level of support in the event of a drop.
The asset’s hourly chart shows the VWAP currently acting as resistance. Bitcoin also recently broke down through the middle Bollinger Band, seeing it as resistance for the time being.
*This article is based on opinions, speculations and interpretations from the author and others, and is not in any way financial advice. Writing about price levels, charts, etc., is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever. Proceed only at your own risk.