As could be expected, Bitcoin is and will continue to be the best cryptocurrency on the market. Its scarcity, security, decentralization, transparency, and global acceptance as a store of value are the characteristics that allow it to be a fundamental pillar in the crypto world today. To learn more about Bitcoin, let’s analyze its chart in depth. Are you joining us?
Bitcoin Chart
This chart shows a long-term upward trend, and in the short term, we continue to see a continuation of the uptrend.
At the moment, Bitcoin’s price is at $97,500, representing an increase of more than 530% from the lows of late 2022. An incredible rise, don’t you think? What do you think is happening?
If we look at the weekly chart, you’ll see that the price has been following an upward trend since the beginning of the year, creating higher highs and higher lows.
Over the last month and part of the previous one, we’ve seen a strong rise toward a resistance zone, and due to various factors, it has broken through that strong resistance, reaching all-time highs.
Technical Analysis of Bitcoin
To perform a technical analysis of Bitcoin, it is essential to read the charts and their context well such as the trend of the chart, the patterns of entry and exit, the supports and resistances, etc. Therefore, let’s analyze all the technical indicators that today’s Bitcoin chart displays.
1- Supports and Resistances
The difference between support and resistances is minimal: both are the same. The only difference is that supports are below the price and resistances above. Where are the levels located on this Bitcoin chart?
As you can see, Bitcoin was in a strong downtrend, and the $17,000 level helped it find some support.
After breaking below that support, it made a false breakout and then moved back up, starting the short-term uptrend we are currently experiencing.
This entire uptrend has allowed buyers to push the price strongly, reaching an all-time high of $97,000.
Now, after breaking the December highs, the trend has continued upward, and due to various factors (including the U.S. elections and Donald Trump’s victory), it has exploded, reaching an all-time high of $97,000 with significant demand.
2- Where to Enter and Exit
It is not easy to place your entry price, exit price, or even the stop loss correctly. If you intended to exit the operation manually, you can forget that idea. It will not benefit you at all. Knowing when to enter a trading operation is important, but it is much more important to know how to exit correctly.
So, let’s go. Let’s mark our key points:
You need to consider what type of investor you are. If you’re looking to buy for the long term (holder), you’d wait for support zones to accumulate positions. Price fluctuations wouldn’t matter as much to you. However, if you enjoy trading (swing trader), you need to be clear about where to place your entry, stop loss, and risk levels.
In both cases, you can take advantage of the opportunities presented by the two key points I’ve marked on the chart:
- If you’re a holder, you can use the zone around $80,000–$70,000 or even the current level at $97,500 to accumulate BTC, which would be ideal right now if the price consolidates there. Alternatively, you could wait for it to return to $70,000. As you know, anything can happen in crypto, so the price could even revisit the $17,000 zone, although this is much less likely.
- Another option is to try to catch a move with swing trading. In this case, you’d wait for support at $70,000 and target levels of $90,000 or even $100,000.
3- Weekly Moving Average
Today, we can (and should) adjust our technical indicators to assist us. The weekly moving average, although poorly configured, will not lead us to major disasters. Anyway, we have configured it to mark significant differences in terms of precision and utility. The blue line indicates bullish moments, while the red, draws the bearish ones. Let’s see what happens in this case.
4- Divergences
When a divergence occurs, something smells bad, something is wrong, because the price and something derived from the price do not match. If you want to know how to read an indicator when looking for divergences, click here. Now, let’s start detecting those contradictions between the price movement and a technical indicator on the Bitcoin chart.
MACD
There are few occasions when significant divergences of MACD appear on weekly charts. However, when they do appear, caution is necessary because significant changes are coming. Let’s analyze the Bitcoin chart. At first glance, what do you detect? Tell me. 😉
The price is trending and experiencing a bullish breakout, with the MACD starting to rise a few weeks ago. This means it is supporting the new rally toward higher highs. Remember, this indicates that the indicator and price are aligned, with the MACD accompanying this move to new highs.
RSI
The RSI moves between 0 to 100 and indicates whether the price is expensive or cheap. Two things could happen:
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- The price is very high and there is an overbought situation (levels above 70).
- The price is below 30 (oversold or very low).
The price is currently at an all-time high, and the RSI has been indicating a potential upward move for a few weeks. Remember, the RSI, as an oscillator, tends to be a much faster indicator compared to others when detecting changes, overbought, or oversold conditions. As expected, it is now in a strong overbought zone, around 87.
Triangles
The triangles in trading form an important part of technical analysis with cryptocurrencies. There are different types of triangles. We have the ascending triangle, the descending triangle, and the symmetrical one. Which one appears in the Bitcoin chart?
For now, we don’t have more compression in the form of triangles, and the price continues a strong rise without many stops.
5- Volatility
Volatility is usually a sign that the price is accelerating in one direction. To know the volatility that Bitcoin currently has, we will look at the Japanese candles. Remember, the interpretation of Japanese candles in trading is a matter of common sense.
The larger candles represent fast price movements. The smaller ones show the opposite: quieter areas.
On the daily chart, I’ve marked (orange circles) the most recent periods where Bitcoin has experienced significant volatility. As you can see, in the past few weeks, upward volatility has begun, with strong green candles moving from $60,000 to the current levels.
There is no sign of strong selling pressure, despite some minor corrections. The bulls are clearly in control, pushing with great force. The latest move to all-time highs further confirms this.
Forecast with Bitcoin
If you’ve made it this far, it’s because you already know what this is about. You are clear about what Bitcoin is, but you want to know what will happen with it. We will tell you what could happen from now on. However, we do not promise that it will happen. This is what we deduce from the different patterns, but it is not 100% reliable.
The monthly chart is clearly bullish, and on the weekly, we’re still seeing an uptrend. The key will be whether the price continues rising into uncharted territory or takes a small pullback to gather more momentum. The price action and structure certainly indicate strength for further continuation.
We need to keep a close eye on this all-time high zone. Previously, the $70,000 level marked the top of the accumulation range, which could now act as support if the price drops and bounces there. Alternatively, the round number of $80,000 could serve as support.
Personally, with all the current FOMO and increasing adoption by the public, it seems very likely that the upward move will continue. However, we must remember that the price could be overstretching itself. Always stick to your trading plan and remain cautious.
What would you do? Would you buy now or wait for an interesting correction to enter?
If you liked this analysis, I leave you here the analysis and prediction of Ethereum.
Trading with Bitcoin
As you know, trading with Bitcoin is very delicate. Buying and selling, taking advantage of price changes is not a game. You need to be trained to do it effectively and profitably. Anything else will only lead to losing time and money. Don’t you want that? We must enjoy every day as if it were the last, don’t you think?
Don’t procrastinate. If you want to learn how to do it right, practice with us, and remember to store Bitcoin in the world’s safest wallet, Material Bitcoin. 😎 And, of course, don’t forget to keep observing the Bitcoin chart with us. The more you practice, the better you’ll do. However, do not buy just because the price reaches support, always wait for it to confirm the stop.
If you have doubts or questions, join our telegram channel!
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