So it seems like bitcoin wanted to go down a little more. I barely read news or try to stay on top what’s going on in our crazy world, but if I would have to guess the general sentiment starts to be pretty bearish, ‘bitcoin is going to die’ once again and so on…
As I wrote in my previous analysis, in the case of more movements down the daily average from 200 days will probably act as a good support level.
Sorry for the messy chart, but I will try to put your focus on the most important things at the moment. Highest white dotted average is from 200 days, and the price went a little bit lower than that. Price hit the 50% fibonacci retrace very accurately and the bigger averages from 6 months (solid white) and from 1 year (solid yellow) and also the average from 20 weeks (dotted pink). We are still waiting how this weekly candle closes, but it would be good if it closed above all of these averages.
On the daily chart we can see that Monday’s green candle engulfed all the bottom candles. This could be a start for the up trend to continue and this correction to be over. I have marked important support and resistance hits on the way from the bottom with white arrows.
The bigger picture looks very bullish, and even if we would go a little bit lower it seems to be only a matter of time when the bull market up trend continues. If you have been reading my analysis for a time now, you know that I am not a bulltard who always says up. I am merely telling you what I can read from the charts.
Why bitcoin is one of the best investments in the world today and why technical analysis works (simply explained)
The author has written over a hundred bitcoin analyses in the span of five years and is very experienced in trading bitcoin.