Bitcoin Trading, Crypto Trading, Trading
For weeks, the Bitcoin price has only known one direction. There have been no extended breathers for the bulls. And where have the bears gone? Is it still possible to invest in Bitcoin now or will the price soon slide further down again? This will be presented from a technical perspective using a weekly, daily and 4-hour view.
Opportunity to invest now?
For long-term investors, the focus is certainly on the larger time units. Higher time units always have relevance in the deeper time levels. Therefore, let’s now take a look at the weekly chart of the Bitcoin price.
The bears have done it! The current weekly candle is closed bearish. This means that the closing price is lower than the opening price. No bearish candle has been marked since the old all time high of 2017 was crossed. The bulls marched completely up and brutally trampled every bear. But will this continue? In our last report, we already pointed out the support zones for the weekly range.
The Relative Strength Index, an indicator of buying power (pictured below), has been in extremely expensive territory for weeks. Looking at the past in the Bitcoin price, this is currently the longest range in this expensive area. It is now extremely important for the bulls to take a break and recharge their batteries. This can be done either by a longer sideways phase or a downward price correction. Let’s therefore take a look at the daily chart to see if a trend can already be seen there.
Buy BitcoinTrade on the world’s leading social trading platform! E-Toro!
Join millions of people who have already discovered how to invest smarter by copying the best investors in our community or being copied themselves and earning a second income. Start now!
These support levels must hold for the Bitcoin price!
What strikes you immediately are the four bearish candles right after the all time high at around $42,000. Only the small support zone of $32,275 to $34,000 was able to provide support for the Bitcoin price. This week, the price did not manage to exceed the previous high. However, no further lows have been set at present.
A break of the support zone just mentioned should only find further buying power in the area of the lower two daily key levels. This zone stretches from about $22,800 to about $23,850 on Coinbase. The Moving Average 200 (black ascending line), an indicator that reflects the long-term trend, would also have reached this support zone in the event of a renewed sell-off of the Bitcoin price. This indicator is seen by many traders as a strong support.
In order to continue rising, the current high must be overcome sustainably. However, it seems that the bulls are currently taking a break. Whether this will be used and the Bitcoin price will continue to rise or whether the bears will take over remains to be seen.
Take the opportunity now and trade Bitcoin and other cryptocurrencies on Bybit!
75% of private CFD accounts lose money. No EU investor protection.
Bitcoin price in no man’s land of decisions!
Looking at the 4-hour chart, one thing stands out: Something is happening, but nothing is really happening. Bulls and bears are joining hands, but neither of the two factions really wants to start something. The current sideways movement will have to be sat out. It is still too early for good entries.
As soon as a stable trend develops again, one can look for entries. It does not matter to traders whether the Bitcoin price rises or falls. With patience and the right setup, good short- and long-term profits can be achieved.