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Bitcoin Friday: Technical Analysis of Bitcoin

Not much has happened with Bitcoin and cryptocurrencies this week. Bitcoin currently moves to the side and after each slight increase, a decrease immediately follows. What are the most important levels and how could you trade on a 4h time frame? Read on!

Daily chart

On the daily chart, we can see one very strong support and resistance. Support is oscillating at around $ 28,841 – $ 30,364. Resistance at $ 46,423 – $ 49,063 and is pushing us from the top. These are sturdy levels that might prove difficult to overcome. In the coming weeks, I do not think it is probable that Bitcoin will come close to breaking through either of these two levels.

Also, on the way to the new ATH, this resistance will be, in my opinion, the biggest problem. If we look at the market in terms of cycles, then we had a really long growth here, which lasted more than 6 months. Then a drop followed, which got Bitcoin’s price to 50% of the previous ATH. This means that now a sideways movement should ensue. And that is exactly what is happening. We cannot be surprised that after such strong growth and following rapid decline, this is happening again. The market simply needs to “rest” and gain strength.

Technical analysis of Bitcoin on a daily chart Figure 1: Technical analysis of Bitcoin on a daily chart

4H chart

As for the 4H chart, the conditions we are witnessing right now are really ideal for trading. Of course, HODL is a bit behind at the moment, because the price is not moving in trend. However, as far as trading on the 4H chart is concerned, I must point out here that Bitcoin now perfectly respects the selected levels.

By trading, USDT, and BTC you can get quite a nice profit. In order to achieve this, you need to execute shorter trades spanning from a few hours to a day in length and close positions on targets. This is currently the way to earn.

On the 4H chart, we can also see that Bitcoin is currently preparing for a break in local resistance. The resistance is worth $ 41,379 – 42,509. In my opinion, Bitcoin will tend to push for this resistance. However, the break will not be so easy. For a market in this state, a boring sideways movement is symptomatic. Subsequently, when no one will expect it, the movement in the given direction will eventually come.

Technical analysis of Bitcoin on a 4H chart Figure 1: Technical analysis of Bitcoin on a 4H chart

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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