Bitcoin Friday: Technical Analysis of Bitcoin

Daily chart

After almost 2 months, the decline seems to be finally coming to an end. From the bottom, the price is held by very strong support at the level of 30,000 USD, and from the top, it is pressed by the trend line. The space between these two levels is already minimal. Bitcoin has just approached the top trend line this week, and the situation now looks more bullish. A webinar, which was attended by Jack Dorsey and Elon Musk this week, may also have contributed to this situation. The topic of the webinar was Bitcoin. Overall, we heard very positive responses to the webinars addressed by Elon Musk, which could have contributed to the improvement of Bitcoin.

No significant changes can be spotted on the daily chart, but we know that the current decline is coming to an end. However, if we are looking for more visible movements we should take a look at the 4H chart.

Figure 1: Bitcoin on a daily chart

4H chart

For a while, the situation on a 4H chart was suggesting that we were going to hit a new low. At one point, we were really close to it thanks to the rising intensity and high volumes being manifested in the decline. But then, the mentioned webinar took place and the price went up immediately. The price of altcoins also rose sharply. As you can see from my chart, nothing is certain in the short term and we can still go for the new LOW. Bitcoin has not yet been able to overcome the trend. However, its rebound from the support was very promising. Amidst all this, JP Morgan announced that they will be the first bank in the United States to offer cryptocurrencies to wealthy clients.

Strong support backed by mentioned positive news pushed the price of Bitcoin up and at least for some time averted the threat of fall below $ 30,000.

Figure 2: Bitcoin on a 4H chart

Conclusion

Be that as it may, nothing is still certain and until the trend line is definitively broken, Bitcoin can still go for the new low. But one thing is certain, this week was a turning point in terms of fundamental news as all of them were positive and impactful.