4H chart
On the 4H chart, we are currently witnessing an interesting situation. Bitcoin has already broken through the big channel that it has been in for a few days. However, who was expecting a joy ride is probably disappointed at the moment. Instead, another smaller channel was created. At present, I see 3 main “obstacles” in the chart:
- MA21
- MA77
- Dashed trend
If Bitcoin is to move further, we need it to overcome the 3 points mentioned above. We are currently fighting on the trend line. What I find concerning is the intersection of MA21 and MA77. Albeit this is not very positive but the chart seems to have managed to overcome this intersection so far.
What is important to mention here is the response of altcoins in relation to Bitcoin movements happening this week. It seems that with every slight growth in Bitcoin’s price, altcoins move upward as well. However, this applies also in the opposite direction resulting in altcoin’s price decrease of 10 to 15% reacting to Bitcoin going down by 3%. The sensitivity is currently very high, so it is crucial to correctly estimate the direction of Bitcoin first.
Figure 1: Technical analysis of Bitcoin on 4H chart
1H chart
If we focus on the hourly chart, we will notice that soon enough we can expect a break of one of the trendlines. Lately, the hourly chart presents data in such a way that it seems that Bitcoin is going up to the moment of breaking the trend line. Once the line is broken, then it begins to fall to a new low. Even now, after the last correction, Bitcoin has grown quite sharply, re-establishing the trend line. However, if a downward breakdown occurs, a new low scenario may occur again. Because the trend lines hold us from below and from above, some of these lines will not last in the coming hours. And it is precisely this situation that I will personally wait for in the coming hours to be able to determine the next direction of the market.
Figure 2: Technical analysis of Bitcoin on 1H chart
Conclusion
Despite all the recent price movements, Bitcoin is still bullish. The growth we have seen over the last few months is taking its toll and Bitcoin is moving more to the side. In any case, once the side movement will end, we should be witnessing the price go up once again.
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