Bitcoin Weekly Analysis - Up An Unbelievable 43,4% - So, What Happens Now?
What a week Bitcoin had, it started the week at 1917 and ended at 2749. In dollar terms that is an increase of 832 USD or a mammouth 43,4% increase.
But before we go to the weekly chart, lets have a look at the daily chart:
As you can see from the daily chart almost all of the weeks increase came on Thursday. Since then it has created a bull flag which is getting close to an eruption.
Will it be to the upside? From a technical perspective it sure looks like it. However, since the SegWit is coming in a week from now, this upcoming week is uncertain. But if you want to trade Bitcoin and play for an upmove, today is the day to get in.
Ok, now, lets have a look at the weekly chart:
Wow, this is probably the strongest weekly candlestick I have ever seen for Bitcoin. Obviously, that is extremely bullish for Bitcoin from a technical perspective.
So, in conclusion, it does look really good, however, since we have the Segwit coming soon, I would just recommend you to sit still in the boat if you are an investor and perhaps make a short term trade to the upside if you are a trader.
Range wise, the last pullback went all the way back to 1830 and if you subtract that from the All Time High at 2980 you get a range of 1150.
So if we were to double this range, we would end up at 4130 USD so that would be my next target.
Happy trading!
lets double it yes!! I am very excited to see this all going upand I fail to keep calm haha. I just believe there is still much to happen between now and 1 year from now in cryptocurrencyland. Let's not hold our breaths and keep breathing ;p)
oh yeah, this year will be very exciting
I think it's clear that Bitcoin has quite a future. The fact that it can fully rebound from such large drops shows that it has real value and a growing following. It's always a nerve-wracking time when trading rates drop such a large amount, but if you bought into Bitcoin because you think it has a bright future, it's best to have faith in the longer-term outlook and ride the wave. There's still so much potential upside.
Thanks for your insight, very well put.
As an investor, Bitcoin is an amazing long term hold but you have to realize that high volatility is part of the game, especially now when Bitcoin is relativitely small compared to major fiat currencies. That will decrease later on, but probably not in the next 1-2 years.
I agree, we're certainly in for more of the same volatility in the near-term, but on an upward trajectory. I think Bitcoin is big enough now though to avoid some of the unpredictable spikes and crashes of the past, the likes of which we sometimes see now with newer coins.
What happens next?
I expect new 2014-16 style depression all across the crypto segments. Maybe not so long but still painfull. I suggest you to be prepared.
Anything is possible, but from a technical perspective it looks very bullish and we did find some support around the 1800 area. If we were to test support again, I believe that we need to go down to the 1200 area.