Bitcoin price weekly analysis – Locking up the bears

Bitcoin price weekly analysis – Locking up the bears

A new bullish wave has started during last week’s trading sessions, igniting a rise of around 16.5% in bitcoin price. As per our technical analysis, bitcoin price will most probably continue rising towards $8,866 during the upcoming week.

Last week, bitcoin price began recovering, soaring from around $7,128 to $8,303, to record a rise of around 16.5%. The recovery journey started after bouncing off an important support level near $6,674.30. During most of last week’s trading sessions, bitcoin price has been recording higher highs on the 4 hour BTCUSD charts. Even though a downwards price correction attempt began early this Monday, chances are high that bitcoin price will continues rising towards an important resistance level around $8,866 during the upcoming week, especially that a new upwards trend has become obvious on the 4 hour charts.

How far can we expect bitcoin price to go this week?

New upwards trend evident on the 4 hour BTCUSD chart:

Let’s examine the 4 hour BTCUSD chart from Bitfinex, while plotting the Ichimoku Cloud and the Bollinger Bands indicator, as shown on the below chart. We will also extend Fibonacci retracements spanning between the price low recorded on October 10th, 2017 ($4,715) and the price high recorded on January 20th, 2018 ($13,017).We can note the following:

  • After bouncing off the support level around the 76.4% Fibonacci retracement ($6,674.30) on April 9th, a new bullish wave began pushing bitcoin price to higher levels during the previous week. The new upwards trend started after a “bullish engulfing” candlestick pattern had been formed.

 

  • Another bullish engulfing candlestick pattern was formed on April 12th, with a bullish candlestick that has a considerably long body, as shown on the above chart. This candlestick reversal signal confirmed the current bullish wave even more.  After this candlestick pattern had been formed, the market’s bulls managed to break through the resistance level around the 61.8% Fibonacci retracement ($7,886.40).

 

  • A new upwards trend line is now evident on the chart (upwards sloping bluish trend line on the chart). The upper Bollinger band has been acting as an upwards limit that ignites downwards correction attempts since the upwards trend line has been evident. A brief correction attempt occurred on April 13th. Another downwards correction attempt began on April 15th and is currently still active, yet it is expected to stop once candlesticks start touching the lower Bollinger band. The 61.8% Fib. retracement ($7,886.40) will act as a support level that will prevent further drop.

 

  • The Ichimoku Cloud is currently greenish (bullish). Bitcoin price is currently well above the cloud. Furthermore, candlesticks have moved above the Base Line (red line), and the Conversion Line (blue line) has moved above the Base Line. All these signs from the Ichimoku Cloud confirm the continuation of the bullish wave that has started during last week’s trading sessions.

Williams Alligator ready to open its mouth on the 1 day BTCUSD chart:

Now, let’s examine the 1 day BTCUSD chart from Bitfinex, while plotting the Williams Alligator indicator, and the MACD indicator as shown on the below chart. We will also keep the Fibonacci retracements we plotted above. We can note the following:

  • The bullish engulfing candlestick pattern on April 7th served as a reversal signal that marked the start of the new bullish wave.

 

  • The Williams Alligator’s SMAs are realigning and will exhibit a bullish signal shortly. Within less than 24 hours, we can expect the Williams Alligator’s mouth to open its mouth and start eating.

 

  • The MACD indicator is sloping in an upwards direction and is about to enter the positive territory. The MACD blue line has crossed above the red signal line. Hence, the MACD is bullish.

 

  • The most logical scenario is to see the current downwards price correction attempt to stop around $7,886.40. Afterwards, we can expect bitcoin price to continue rising towards $8,866 (50% Fibonacci retracement) during the upcoming week.

 

Conclusion:

A new bullish wave has started during last week’s trading sessions, igniting a rise of around 16.5% in bitcoin price. As per our technical analysis, bitcoin price will most probably continue rising towards $8,866 during the upcoming week.

Charts from Bitfinex, hosted on Tradingview.com

Loading comments