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
Bitcoin is currently sitting at $98,200, which means it has skyrocketed over 550% from the lows of late 2022. Pretty insane, right?
What do you think is going on?
If we switch to the weekly chart, you’ll see that Bitcoin has been in a clear uptrend since the beginning of the year, consistently printing higher highs and higher lows.
Now, over the past month (and part of the previous one), we’ve seen a strong push into a key resistance zone. And thanks to a mix of factors, Bitcoin smashed through that resistance, hitting new all-time highs over and over again.
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?
It’s important to highlight the two key reaccumulation zones along the way—these consolidation phases gave Bitcoin the strength to keep pushing higher.
Now, after breaking December’s highs, the uptrend is still intact, but price action has gone a bit sideways, likely accumulating before the next leg up.
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:
Placing your entry, exit, or even stop loss correctly isn’t easy. If you were planning to exit manually, forget about it—it won’t do you any favors. Knowing when to enter a trade is important, but knowing how to exit correctly is even more critical.
So, let’s break it down and highlight our key levels:
What type of trader are you?
- If you’re a long-term investor (HODLer), you’d look to buy at support zones and keep accumulating, not worrying too much about short-term price swings.
- If you’re a swing trader, you need to be precise with your entries, stop losses, and risk management.
In both cases, you can take advantage of the two key levels I’ve marked on the chart:
- For HODLers: You can look at the $80,000 – $70,000 range as a strong buy zone, or even accumulate now around $100,000 if price finds support there again. Another strategy is to wait for $70,000 if BTC pulls back further. And of course, in crypto, anything can happen—while unlikely, a drop back to $17,000 isn’t impossible.
- For swing traders: The best move here is to wait for a breakout of the previous high and catch the first pullback, just like I’ve marked on the chart with the dark black arrows.
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. 😉
Price is trending up, but we’re seeing a sideways accumulation phase on the weekly chart. Meanwhile, the MACD has been climbing for weeks, though it’s starting to flatten out a bit.
Keep in mind that the MACD tends to lead price action, but for now, there’s nothing too concerning—just something to keep an eye on.
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).
Right now, price is near all-time highs, and the RSI has been tracking this uptrend for months.
Since RSI is an oscillator, it’s usually much faster than other indicators when it comes to spotting trend shifts, overbought, or oversold conditions. Definitely worth keeping an eye on for potential early signals.
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 the latest high-volatility periods with orange circles.
As you can see, in the past few weeks, volatility has surged with strong green candles pushing price from $90,000 to where we are now. We’re also seeing big red candles, along with some green ones pushing up from the accumulation base—a sign that strong hands are still accumulating.
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 the weekly trend remains strong. The key question now is whether price will keep pushing into uncharted territory or if we’ll see a minor pullback to gather more strength. Price action and structure show enough momentum to keep going.
Right now, there’s a ton of euphoria and FOMO kicking off 2025, as the crypto market gains more mainstream traction. Bitcoin is making history, having broken past the massive psychological barrier of $100,000. This marks a before-and-after moment in Bitcoin’s evolution.
From here, we could see more upside if momentum and price velocity hold, but remember—it all comes down to smart money’s next moves.
Personally, with all the current FOMO, growing adoption, and especially with Trump backing crypto, it’s very likely that this rally continues. But let’s not ignore the possibility that price is getting overextended. Always have a solid trading plan in place.
What would you do? Would you buy now, or wait for a solid correction to jump in?
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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