Bitcoin has been inching up the ladder, higher into the $3,900 range over the past several days. As bitcoin recently took a crack at the $4,000 range, it saw rejection from a level of previous difficulty. It will be interesting to see how price reacts going forward. Let’s go to the charts for more information.
Bitcoin’s weekly chart does not appear much different from last week. Although, the downward crossover of the 50 and 100-week moving averages (MAs) appears more clearly defined this week. The asset’s price also appears to show some type of small upward trend line.
According to bitcoin’s daily chart, price appears to have seen rejection off the 100-day exponential moving average (EMA) area so far. Price, however, possibly could rebound upward still. A close above the 100-day EMA and a push higher might allow the 100-day EMA to form a level of future support.
The 200-day EMA still lies a relatively considerable distance above price, possibly indicating a future area of resistance.
The McGinley Dynamic, as mentioned by DataDash YouTube host Nicholas Merten, has shown itself as a significant level for bitcoin. The indicator has posted levels of support and resistance at various points on the chart. Currently, the indicator appears to indicate a possible level of support.
Additionally, the 50 and 100-day moving averages (MAs) have crossed. Last week, CoinDesk referenced the significance of this particular bullish crossover.
Bitcoin’s 50-day moving average (MA) – currently located at $3,669, according to Bitstamp data – could soon move above the 100-day MA at $3,670. The event would confirm the average’s first bullish crossover since the end of August 2018.”
(*CoinDesk used Bitstamp data. The chart above is from Coinbase data.)
Fakeouts in crossovers can occur, however. Price could head lower, leading to a crossover back downward. Although, the crossover posted does show an interesting case for the bullish side of things so far.
It is very interesting to note the price reaction off last week’s indicated red zone of possible resistance. Price appears to indicate bitcoin has had a tough time in this zone, failing to close a strong move above since the December price bottom.
In bitcoin’s most recent push upward, the asset breached $4,000, but barely tapped the red zone before falling back down, indicating resistance. Last weeks chart, shown below, reveals price action before the most recent push toward the zone of resistance.
The trend line mentioned on the weekly chart is also shown on the daily chart above.
Bitcoin’s 4-hour chart indicates a rejection near the top Bollinger Band, with price dropping straight through the middle band, and bouncing below the lower band.
The previous red candle (at the time of this writing) appears to be a fairly bold move downward after price tapped the zone of resistance noted on the daily chart.
*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.