Technical Analysis Bitcoin 01/09/2018
Dear fellow Steemians!
Here's a a quick overview on Bitcoin's recent price development.
On this daily chart we can see Bitcoin's rally upwards from the past 18 days. Right now we are heading right into this next big resistance after breaking through the previous ones at around $6800 and $7000. A close of the daily candle in the green box would be very promising for the bulls, however a retracement to support levels should be taken into account after such a strong upwards movement.
As of now the general sentiment and price action seems bullish enough to assume that Bitcoin is going to break this resistance (green box) and retest the big annual trendline at $7600. Let's take a look at the indicators to see if we can find any arguments that support/contradict this assessment:
The daily RSI is trending upwards in a very strong manner, forming consecutive higher highs and higher lows while still having significant space to move further upwards.
Strong bullish signs from the MACD indicator aswell: the MACD line (blue) and the signal line (red) are far apart from each other while crossing the 0-line of the histogram which means they aswell have a lot of room to go more upwards.
On the weekly chart the MACD looks even better since both lines are about to cross bullishly below the 0-line.
Furthermore BTC is still finding itself in the upwards channel that we drew a couple of days ago.
The lower channel line acts as a support until the case of a breakdown occurs, which we are still far away from witnessing.
In conclusion we can find ample evidence to support a forecast of Bitcoin's continuing uptrend.
One big contra being of course that Bitcoin is still in a severe bear market and when it reaches a point of indecision, price is more likely to fall than it is to rise.
However, no signs of indecision can be found in BTCs most recent price data.
This is it for today, I hope you can find some useful information in this update that benefits your own analysis and trading decisions.