Bitcoin price weekly analysis – All the way up to $9,800

Bitcoin price weekly analysis – All the way up to $9,800

Bitcoin price gained around 10% during last week’s trading sessions, reaching around $8,800 early during Sunday. As per our technical analysis, bitcoin price will most probably breach the resistance around $8,866 and continue rising towards $9,845.60 during the upcoming week.

Bitcoin price continued on soaring along April’s new bullish trend to score a 10% rise in value during last week’s trading sessions. Bitcoin price started the week at around $8,079, rising all the way to around $8,800, at the time of writing of this analysis. The BTCUSD pair has been recording higher highs during most of the 4 hour trading sessions, and a new uptrend line is now obvious on the 4 hour chart. The market is now is about to test an important resistance level around $8,866. If the market’s bulls can breach this resistance level, chances are high that we can see bitcoin price rise towards $9,800 during the upcoming week.

So, how will the BTCUSD pair behave during the upcoming week?

“Golden cross” apparent on the 4 hour BTCUSD chart:

Let’s examine the 4 hour BTCUSD chart from Bitfinex, while plotting the 50 period SMA (blue curve), the 100 period SMA (red curve), and the Ichimoku Cloud, as shown on the below chart. We will also extend Fibonacci retracements that extend between the price low recorded on October 10th, 2017 ($4,715) and the price high scored on January 20th, 2018 ($13,017).We can note the following:

  • An uptrend line is now evident on the chart since April 12th (upwards sloping bluish trend line). Higher highs have been recorded during most of last week’s trading sessions. Bitcoin price has been steadily rising away from the 61.8% Fibonacci retracement ($7,886.40), aiming at the $8,866 price level that corresponds to the 50% Fibonacci retracement (horizontal orange line on the above chart).

 

  • During last week, bitcoin price rose above the 50 period SMA, and the 100 period SMA, which reflects that the bullish wave is getting stronger. Moreover, the 50 period SMA is currently crossing above the 100 period SMA. This is usually referred to as a “golden cross” and is another signal pointing to a strengthening upwards trend.

 

  • The Ichimoku Cloud is conveying four bullish signals. The cloud is now greenish (bullish). Bitcoin price is currently above the cloud. Also, candlesticks are currently above the Base Line (red line). The Conversion Line (blue line) has crossed above the Base Line (red line). As the Ichimoku Cloud is shifted 26 periods into the future, we can expect the cloud’s Leading Span A line (green line) to act as a support level during the upcoming week. As such, we can expect the $8,600 price level to act as a support level that will somehow prevent further price drop during the upcoming week.

New uptrend line obvious on the 1 day BTCUSD chart:

Now, let’s examine the 1 day BTCUSD chart from Bitfinex, while plotting the 100 period SMA (green curve), the 200 period SMA (red curve), and the Williams Alligator’s SMAs, as shown on the below chart. We will also keep the Fibonacci retracements we plotted above. We can note the following:

  •  A new upwards trend line is now also evident on the 1 day chart since April 12th. Four successive bullish candlesticks, with higher highs recorded, have been formed during the past week, as bitcoin price is heading towards the resistance around $8,866.

 

  • The 100 period SMA is now above the 200 period SMA. Also, candlesticks have just soared above the 100 period SMA. This reflects the current bullish sentiment of the market.

 

  • The Williams Alligator’s SMAs are now exhibiting a bullish alignment. We can say that the alligator’s mouth is “open and eating” in the bullish direction.

 

  • From the upside, the resistance level is around $9,845.60 (38.2% Fibonacci retracement). From the downside, the support level is around $8,600 (the Leading Span A line of Ichimoku’s Cloud on the 4 hour chart). The most logical scenario for the upcoming week is for bitcoin price to continue rising towards $9,845.60. Downwards price correction attempts will be halted near $8,600, which will reverse any downwards price movements.

Conclusion:

Bitcoin price gained around 10% during last week’s trading sessions, reaching around $8,800 early during Sunday. As per our technical analysis, bitcoin price will most probably breach the resistance around $8,866 and continue rising towards $9,845.60 during the upcoming week.

Charts from Bitfinex, hosted on Tradingview.com

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