Cryptocurrency market at a glance - Bitcoin technical analysis
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Greetings to all the Steemit and Project Hope community, it is a pleasure to greet you again after a long time in which I have been away from the platform due to some personal problems, however, I have managed to return and repair my computer to be able to work and bring the best possible financial content on my blog and for the whole community, for those who do not know I was several months working on the platform as a teacher, I am very grateful for that opportunity back then, but better yet, I am delighted to return to what was always my digital home within "Steemit" and that is Project Hope.
So, taking advantage of my return, I want to give a big greeting to all members of the community of "@project.hope" and especially to my friend @crypto.piotr, which has always been attentive to my activity within the platform and the community, I hope to contribute again good things and the only thing I hope is that we continue to grow in the short, medium and long term. This time, I bring a very interesting content related to trading and financial markets, focusing especially on the "Bitcoin", being this the mother cryptocurrency of all time, besides, we all know that the BTC is essential to analyze it and more if we want to know what follows if once and for all this can continue with a clear uptrend.
The points I will discuss in this publication will be the following:
- Technical analysis of Bitcoin in general.
- Some fundamental aspects of Bitcoin to take into account.
Bitcoin Technical Analysis
Bitcoin is the leading cryptocurrency in the market and has been the subject of great interest from investors and the general public. Below, I will present a detailed technical analysis of the Bitcoin.
Weekly Chart:
The weekly chart of Bitcoin shows an uptrend since March 2020, with a series of increasingly higher highs and higher lows. The uptrend line has remained intact since then and is currently at an inflection point, the important thing about this is that even though the macro trend clearly slowed down its upward trajectory since November 2021, this trend line is holding the price in the area between $15,906 and $21,773.
Daily Chart:
The daily chart of Bitcoin also shows an uptrend, with a series of higher highs and higher lows. However, there is a short-term correction and pullback towards the support level at the 20-day moving average, which could take the price around the $19,000 level, although, it could be using the $20,600 level as support to take liquidity and look to make another higher high.
Technical Indicators:
The RSI is in an Overbought zone, however, this does not mean that the price if or if it should go down and change its direction, on the contrary, it could be signaling a break in the price to take liquidity and continue its course.
The Stochastic shows a very similar situation to the RSI, the difference is that the %k line is wanting to cross the orange line, which is clearly a bullish signal, and although it is also observed in Overbought zone, it could be a break of the price in search of more liquidity to continue its upward course.
The MACD on the other hand shows an uptrend, the histogram is above the zero line and although the lines are at their maximum point with the probability of crossing to the downside, it is probably a correction.
In conclusion, technical analysis of Bitcoin suggests a long-term uptrend with a short-term correction. Technical indicators suggest a balanced situation between buyers and sellers with a possibility of corrections in search of liquidity, but, with a sustained uptrend. However, it is important to keep in mind that the cryptocurrency market is highly volatile and can be influenced by external events, such as government regulations, something that has been much discussed after the collapse of FTX.
Some fundamental aspects of Bitcoin to keep in mind
Some of the most important fundamental aspects of Bitcoin for this year 2023 could include:
Institutional adoption: More and more financial institutions are adopting Bitcoin, which could help increase confidence in the cryptocurrency and increase its use in commerce and in people's daily lives.
Government regulation: Several governments are considering or have implemented regulations to regulate the use of cryptocurrencies, which may have an impact on the adoption and price of Bitcoin, which, although it may sound negative, the fact that they want to regulate its use is a good sign, since this technology is here to stay, but regulation on a negative level, I do not think it will happen.
Bitcoin Halving: In March 2024 the next Bitcoin halving is expected, which will halve the block reward for miners, which could have a positive impact on the Bitcoin price, so we will most likely see a strong uptrend again after this event happens.
Technology development: The development of technologies such as scalability and privacy can improve Bitcoin's functionality and increase its attractiveness to users.
Public interest: Public interest in Bitcoin and other cryptocurrencies continues to grow, which may increase demand and price.
Use in commerce: Bitcoin and other cryptocurrencies are increasingly being used as a means of payment, this may increase adoption and demand in commerce.
Competition: The emergence of new cryptocurrencies and related technologies could generate competition for Bitcoin, which could affect its price and adoption.
Conclusion
In my opinion the bearish season has not completely passed, but I hope I am wrong and the price breaks highs to enter definitively in an uptrend, however, some technical indicators and analysis that I have done previously, indicate a possible continuation, I hope it is fulfilled, although we must continue to observe the market.
What is said in this post is not an investment recommendation, I recommend everyone to do their own research, this article is just my opinion of the markets and Bitcoin, however, if you want to know more about any specific currency you want me to analyze, please leave it in the comments and I will gladly do it. I will also be bringing new content related to finance, some new opportunities to earn money that I hope you like.
Blessings and keep up the good work - STEEM ON
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Hi @lenonmc21
Great to see you posting in project.hope again buddy. Hopefully you've managed to address your personal problems and I will see you more often :)
I do expect solid rallies during current bear market. And BTC going all the way to 30k usd (only to crash again heavily) would not surprise me at all at this stage.
I would not expect any long-term recovery as long as everyone's eyes are on inflation and FED. As long as they will continue fighting with inflation by destroying economies and financial markets (by increasing and then keeping interest rates on high level) I would consider any sort of BTC rally to be short-term lived.
Also I'm not sure if technical analysis can be very useful when crypto market has been clearly manipulated and it will continue to be manipulated (since it's a small market with low volumes and there are no laws protecting crypto space from market manipulation).
So it hardly seem to matter what TA can show, since especially currently all eyes are on inflatin and FED. And near future will depend on those two variables.
Also, thanks for sharing those fundamental aspects of Bitcoin. This is all knowledge worth reminding and being refreshed.
Have a great day ahead of you :)
Cheers, Piotr