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Bitcoin Friday: Technical Analysis of Bitcoin

Friday is here and with it another technical analysis of Bitcoin. Let us look at the daily and 4H charts.

Daily chart

Not much is happening on the daily chart. The situation is more or less the same. The last month could be described in one word – consolidation. The price went up and down during the month, but as a result, it did not move anywhere in particular. However, I still see this structure as prone to growth for several reasons. The first reason is the fact that we keep on following the trend line. The second reason is the constant sticking to the chart in the bull market, while the indicators are falling, the chart continues going to the side.

Bitcoin technical analysis daily chart Figure 1: Bitcoin on a daily chart

4H chart

Here the situation is a little more interesting. Looking at the chart, we notice several key features. We consolidate below the maximum. The history of past bull-runs, as well as this one, showed us that whenever we moved sideways in a similar way below the absolute maximum, it was only a preparation for further growth. However, it is important to realize that the graph cannot grow continuously. Before each significant growth, enough buy orders must be collected which takes some time. I would compare the whole situation to stress. The more stress you build up without venting it naturally, the more explosive will be your overall reaction once the stress exceeds a tolerable level. If, on the other hand, there is little stress, no “explosions” occur.

As for the 4H chart in the coming days, I see only two possible scenarios. Both of which end up at a new maximum.

  • The first scenario predicts testing values of $ 54,600 – $ 55,400, followed by a rebound from support, ending with an attack to a new high.
  • The second option revolves around price continuing to the side, probably in the formation of a triangle. An upward movement will follow.

In both cases, these are bullish movements. In order for the bearish scenario to occur, the price would have to break down through the mentioned support.

Bitcoin technical analysis 4H chart Figure 2: Bitcoin on a daily chart

Conclusion

Bitcoin is still continuing in a bullish trend with no signs of change whatsoever. The longer we will consolidate under the peak price, the more explosive growth I expect.

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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