A healthy rise starts slowly but that can be relative in bitcoin’s case

We have been consolidating near the recent rise top for a while now and can keep doing that for a few more weeks.

White solid monthly moving average is from 6 months, yellow from 1 year, orange from 2 years and green from 3 years. White dotted average is daily average from 200 days and pink is weekly average from 20 weeks.

Dashed horizontal line seems to be an important level, bottom weekly candle body level in July 2019 and top weekly candle body level in October 2019. Now we have a weekly wick through it but we did not yet close the candle above it.

Daily chart with all the same tools. On the daily chart we see better the importance of these specific moving averages like weekly SMA20 (dotted pink) and daily SMA200 (dotted white).

Daily RSI stopped at 70 for now. Over 70 is the ‘rally mode’ area of which I wrote about in the previous analysis.

We are above all the important moving averages, but have stopped for a bit at horizontal resistance of that dashed white line and long term 38.2% fibonacci levels. This looks like a clear correction in a bigger trend up.

Maybe it will go to that white dotted daily SMA200, I am not sure. Daily RSI usually has to go near 50 or below after it has not been able to go above 70.

What looks more likely is that this is going to keep going up sooner rather than later and when that happens it will be more powerful than the rise so far has been. When $20k top breaks the speed of the rise takes another step up again.

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.

Writer Toni Kosonen

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