Weekly Bitcoin Analysis - Did We Finally Bounce Off From Support? (Video)

Oh boy, this was one exiting week for Bitcoin, we had one helluva roller coaster. In the beginning of the week we went all the way down to 6k until we got support and was able to climb back up a little.

However, we barely moved during the week in terms of the closing price. We went down a couple of percent for the week but lets have a look at the weekly chart:

Comment: From this weekly chart we can see that Bitcoin formed a pretty nice looking hammer or a doji sign. However, we have formed similar weekly candlesticks 2 times earlier since the peak and then we have fallen back anyways. So, why would this time be any different? Well, the main reason for that would be that we did bounce off from a solid support level around 7k. This was not the case in the previous similar weeks.

You could also argue that we do have a falling wedge pattern here and that is ususally a bullish sign and that could indicate that we might break out to the upside in near future (hopefully this week). But if we were to do that, we need a weekly close above 10k.

Finally. lets have a look at the daily chart with the area line chart:

Comment: Here we can see that we still in a short term bear market, we are making lower highs and lower lows and we must take out the last major peak which is located at 11,7k. If that were to happen, I would become bullish again for Bitcoin.

Happy trading!