After taking a severe beatdown in 2018, bitcoin’s price has continued to fluctuate largely in the $3,000 range. The price future of BTC seems to hang in the balance, ultimately looking for further downward action or a trend reversal to the upside. Let’s check where crypto’s largest asset sits on two of the higher time frame charts.
Image Courtesy: Tradingview.com
Bitcoin’s weekly candle chart looks similar to last week’s view. Price still appears to lie in a somewhat comparatively tight consolidation range, with similar valuation over the past several weeks.
Price still lies just above the 200-week moving average (MA). The 200-week MA appears to have acted as support in prior weeks. It would be interesting to see the effect if valuation were to break below the 200-week MA.
The 50-week MA and 100-week MA possibly could act as resistance as well, if price were to make a move upward near those averages.
Image Courtesy: Tradingview.com
Bitcoin’s daily candle chart looks quite interesting as the 50-day MA appears to be in the process of crossing above the 100-day MA. Such crossovers to the upside sometimes can be seen as bullish events.
A golden cross, for example, “is a candlestick pattern that is a bullish signal in which a relatively short-term moving average crosses above a long-term moving average,” Investopedia explained. In terms of the golden cross, “[t]he most commonly used moving averages are the 50-period and the 200-period moving average,” Investopedia noted. Although, many different strategies and schools of thought exist regarding moving average usage and application.
CoinDesk referenced bitcoin’s 50-day MA crossing over the 100-day MA “would confirm the average’s first bullish crossover since the end of August 2018.”
Bitcoin’s price, however, still lies under a potentially tough range of possible resistance (red box). It appears as though BTC has seen multiple rejections from that level since the December downward move to around $3,175.
Additionally, the 200-day MA still sits noticeably distant above price, with the potential to reject price as well at some point higher up. Market valuation currently finds itself between the possible zone of resistance and the two MA’s, deciding where to go next.
*This article is based on opinions, speculations and interpretations from the author and others, and is not in any way financial advice. Writing about price levels, charts, etc., is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever. Proceed only at your own risk.
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