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Bitcoin Sunday: Technical Analysis of Bitcoin

Today is Friday and that again means a technical analysis of Bitcoin. What does it look like on the daily and 4H charts?

Daily chart

Let us start again on the daily chart, where absolutely nothing has changed lately. The chart is still going sideways. The question remains what happens next. At this point, the BTC is still in the bull run, and week after week news comes only to confirm continuing growth of Bitcoin.

Tesla, Visa, Mastercard. All of these corporations are related to mentioned recent news about Bitcoin, which should send the price of this cryptocurrency up. But why there is no growth as of now? The answer is consolidation. We cannot make short-term decisions based on fundamentals. The fundaments only show us that in the long run, the price could still rise, but in the short term, it will tell us absolutely nothing. Indeed, news such as the adoption of BTC by Tesla or the VISA partnership failed to push the price up. That means only one thing - the price is not yet ready to go up.

BTC price analysis on a daily chart Figure 1: BTC price analysis on a daily chart

4H chart

As for this chart, I see a decline to $ 54,000 - $ 55,000 as the closest move. I understand this side movement as a mere "respite" before further growth. As you can see in this chart, we broke through the channel which is really important. Because as long as we were in the channel, we were more in the correction structure. It was not until the channel broke that got us back in the game.

Before the new high, however, we have another strong resistance at $ 58,200 - $ 59,388. If we can cross this line, then nothing prevents Bitcoin from further growth to a new maximum. From the point of view of the whole structure, our support is absolutely crucial. Bitcoin should not fall back into the channel at this point. It should maintain support and the trend line. If you should remember one thing from today’s analysis, let it be this one.

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

Conclusion

I am going to repeat my words from last week. Bitcoin is still bullish and at this point, there is nothing that should suggest any change happening any time soon.

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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