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Bitcoin Friday: Technical Analysis

Today is Friday, which means it is time for technical analysis of Bitcoin. So let us look at the daily and 4H chart.

Daily chart

As for the daily chart, I am of the opinion that it is only a matter of time before the price rises. Bitcoin has been on the side trend for some time, but all indications suggest that it will rise again. As a target for a mid-term cycle, I set a value of $ 75,000 which I got by extrapolating it from the price level of the last growth.

Bitcoin is just below its all-time high and continues to go to the side. So far in the bullish cycle, this meant that we could witness growth. I think Bitcoin still needs to gain strength before it can grow, however. This sideways movement is just as good for the indicator. If BTC goes to the side, MA21 will temporarily approach the chart and act as support. The same can be said about the BK77.

BTC Analysis on a daily chart Figure 1: BTC Analysis on a daily chart

4H chart

As for the 4H chart, I like the declining volumes. It means that the chart goes to the side and something is going on. This only confirms my assumptions that after moving to the side, an upward movement could come. I see strong supports between $ 53,000 and $ 54,800 that have temporarily kept us in place. If the price will happen to go down, another strong support can be expected at $ 50,263.

I also marked the blue trend line on the chart. However, if the side movement will last longer, I might as well prepare a breakdown of this trend line for you. Should this breakdown be very sharp with volumes, we would have understood it as a disruption of the growth structure. On the contrary, if it is not sharp and without volumes, then we can accept it as a continuation of the movement to the side and the priority will continue to grow.

In my opinion, Bitcoin is very well prepared at this point, and the longer it goes sideways, the higher the chance that the break will come upwards.

BTC analysis on a 4H chart Figure 1: BTC Analysis 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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