Bitcoin’s price has created a bullish recovery Japanese candlestick in the weekly data.
Weekly indicators are bullish but daily signals are bearish.
BTC broke a short-term downward wedge pattern
Bitcoin’s (BTC) price has declined significantly over the past week. That said, he did manage to break past a short-term bullish reversal pattern.
Anon System is expected to continue rising towards the resistance areas mentioned in this article.
Bitcoin weekly bullish close
During the week of February 22-28, Bitcoin’s price fell from a high of $ 57,508 to a low of $ 43,000, creating a bearish Japanese overlap candlestick in the process .
The RSI first created a bearish divergence before the price fell, but then canceled it with a concealed bullish divergence . This is a strong sign of a continuation of the uptrend.
Additionally, the MACD has yet to create a lower momentum bar (although it is close to one this week) and the Stochastic Oscillator has yet to form a bearish cross.
Since 2015, there have been five instances of Japanese bearish recovery candlesticks following a significant upward movement.
In two cases, new highs occurred immediately after (green arrows). Two other cases led to slight rebounds and lower lows (in yellow) while one case was followed by a rebound, but marked the start of a two-year correction (in red).
Nonetheless, these five cases led to a rebound in the week that followed. So it is likely that this week we will also see some form of upward movement.
The daily chart shows that BTC is currently trading above the minor support area at $ 44,800. The course validated this area for the second time and created a lower wick.
However, technical indicators are bearish. This is evidenced by the passage into negative territory of the histogram of the MACD and the bearish cross of the Stochastic Oscillator.
The two hour chart is a bit more bullish. It reveals a passage above a descending wedge and very significant bullish divergence in the RSI like the MACD.
If the price of BTC continues to rise, the closest resistance would be between $ 50,670 and $ 52,480. This range corresponds to the 0.5 and 0.618 fibonacci retracement levels measured from the entire bearish movement.
This would also agree with the possibility of a rebound, as highlighted in the weekly chart .
A passage of the area between $ 50,670 and $ 52,480 and its validation as support would confirm that the trend is upward.