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Bitcoin Friday: Technical Analysis of Bitcoin

Bitcoin is currently at $ 36,500. Two major things have happened this week. First, the price fell from the triangle downwards followed by a quick movement in the opposite direction.

Daily chart

How did the above-mentioned movements affect the daily chart? To be honest, they did not.

The support is still at $ 28,841 - $ 30,364. Strong resistance on the daily chart is $ 46,423 - $ 49,036. This resistance will probably be the biggest obstacle in reaching the new ATH. So far, we can see that no significant growth has come from LOW, and we can basically say that we are still quite low. However, as long as we keep the same support, it is all right. Bitcoin has experienced very rapid growth in recent months. And the same adjective can be used when describing the decline which happened in recent weeks. From this point of view, I would not be surprised if a period of boredom or a movement in a certain price range would follow. We have strong support from the bottom with resistance pushing us from above. At this point, Bitcoin is locked and will remain that way for a while.

Bitcoin Daily chart analysis 11/6/2021 Figure 1: Technical analysis of BTC on a daily chart

4H chart

As for the 4H chart, I personally expect a breakout from resistance. The only thing left to solve is from what value will that happen. For technical analysis’s sake, it would be ideal if the price would go to test the level of $ 34,778 - 35,475. However, as can be seen in the chart, the MA77 still holds. The longer we are under this trend, the greater the chance of a break. Of course, there is a possibility of decline, but I personally am rooting for the price to grow. One of the main arguments for me is the volumes that are being currently traded.

When we look at the volumes at which we have been declining and compare them to the ones at which we were growing, it is clear where the predominance is. The fall from the triangle was absolutely volume-free, which is why Bitcoin managed to recover so quickly. Now the volumes are insignificant again so we will wait for the next move. However, my opinion is that it should an upward one.

Technical analysis of Bitcoin on a 4H chart Figure 2: Technical analysis of BTC 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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