What Happened To Bitcoin Last Week? Sell/Buy? [Weekly Analysis - July 3rd 2017]

It sure was a roller-coaster for Bitcoin last week. In the beginning of the week it went down to 2300 and then it went up to 2594 and finally finished at 2504 and it started at 2502! Thats only an increase of 2 dollars for the whole week. Lets have a look at the daily chart first:

So, what can learn from the daily chart? Well, we can see that Bitcoin during the week went below the lower trendline for 4 days and closed right below it yesterday. We can also see that we touched the lower Bollinger Band at least 2 times during the week. It also touched the horizontal support line once during the week.

The last thing I want to say about the daily chart is that Bitcoin ended the week in an optimistic fashion and it did not close near the lows of the week.

Ok, so, now its time to have a look at the weekly chart:

From the weekly chart we can see that Bitcoin nearly moved at all at the close of the week. We can also see that we created a so called doji hammer, and that usually indicates that the market is about to turn and in this case upwards.

What Bitcoin needs to do now is that it has to pass the resistance at 2524 and close above it. Then it will break through the descending trendline as you can see in the weekly chart.

If it passes 2524 I dont see any major resistance on the weekly chart until 2950 USD. So if we can move up to that area during the week I would say that that is very bullish.

But what is the risk to the downside? The last weeks low was 2291 so it would be negative if Bitcoin were to go down there and especially if we close below that price at the end of the week.

Ok, lets finish up, I would interpret this last week as slightly optimistic, it created a nice doji hammer and the price went up during the week even if it was only 2 dollars, it still went up and that is positive. The negative part is that it close below the weekly descending trendline and it also closed below the daily lower trendline. So, I would rather buy than sell Bitcoin at this stage.

Happy trading!