Bitcoin up over 150% from yearly bottom and the trend looks strong

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bitcoin-analysis

Bitcoin price has been going mostly sideways for the past few weeks, but now it seems that the up trend from $3.8k bottom is going to continue even stronger.

Last time I wrote: ‘I think the price is heading at least to test the big $10k round number before possibly retracing and testing supports. If that $10k breaks with a close above $10.5k then the 2018 open at $13880 is the next resistance.’

Weekly closed nicely. Previous weeks’ shooting star close did not cause a reaction to the downside, but instead we got a nice green body that closed near to the $10.5k high.

It looks to me that if the price gets above $10.5k, then it will go to test the 2018 open price at $13880 and if that breaks with a close then we are going to test the ATH (all time high) at $19666. There is a small resistance on the way at $11479, but that won’t probably be a problem for the pump.

On a daily chart we see that we tested the big round $10k number and then tested the supports; the average from 50 weeks (dotted yellow), the average from 100 days (solid blue) and the average from 200 days (solid red).

If we break the $10.5k level, it will probably cause fomo buying (fear of missing out), but if it doesn’t then we go to test the supports again. The 2020 open price support is the strongest at $7160, but I doubt even the $8k with the averages breaks in case of more ranging before pump.

In the big margin call cascade to $3.8k there was over $1.6 billion margin long positions liquidated only in Bitmex and now there was almost $500 million liquidated on this much smaller dump from $10k to $8.1k. This makes me think that this dump was only to wipe out the late high leverage longers before the real pump begins. You can see this data on Cryptometer.

As a general tip to traders I could say that it is a lot better to focus on big swings and forget day trading small moves. The market is unpredictable on short term and will most likely chop you off from your position. The big money is on the big swings and focusing on them will help you to keep your eye on the price.

Why bitcoin is one of the best investments in the world today and why technical analysis works (simply explained)

 

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