red 
Okay, so take a look at it – Bitcoin will remain the leader in the crypto game. Its scarcity, security, decentralization, transparency, and worldwide recognition as a haven of value make it a solid foundation in today’s crypto landscape. Now, if you’re ready for it, let’s dive into the nitty-gritty of the Bitcoin technical analysis chart. Are you ready for the journey?
Table of contents
Bitcoin chart and trend analysis
This chart is following a fundamental uptrend, and in the short term, we are starting to see a continuation of the short-term uptrend that has pushed Bitcoin to all-time highs. Could this be a new phase for the cryptocurrency?
Bitcoin is currently trading at $58,600, up over 270% from its lows in late 2022. Isn’t that an incredible rally for the year? What do you think is going on?
If we move to the weekly chart, you will find that the price has continued its upward trend since the beginning of the year, creating higher highs and lows. However, in recent months, it has remained in a sideways phase between the key levels of 70,000 and 60,000.
The most likely scenario now is for the price to remain sideways in this range for a bit longer and gain more strength to continue upwards..
Bitcoin technically and trend analysis
For Bitcoin technical analysis, it is essential to be skilled at reading charts and understanding their context, such as chart trends, entry and exit patterns, support and resistance levels, and more. That is why we will delve into all the technical indicators displayed on the Bitcoin chart today.
1- Support and resistance
the difference between Support and resistance Bottom Line: They are basically the same. The only difference is that support is below the price, and resistance is above. Where are the levels on this Bitcoin chart?
As you can see, Bitcoin was in a downtrend, and the $17,000 area helped slow it down a bit. After breaking this support, it made a fake move, and went back inside, to start the short-term uptrend that we are currently seeing.
This entire uptrend has allowed buyers to push hard and break the psychological barrier at $70,000.
Now, after breaking the December highs, the uptrend has continued. Due to various factors, including the news of the BlackRock ETF launch and the recent halving event a few days ago, Bitcoin surged to the resistance level around 70,000 with huge demand. It broke through this area and faced rejection, keeping the price below the resistance within a large accumulation area.
2- Where do we enter and where do we exit?
Determining your entry, exit or even stop loss point is not easy. If you are thinking of manually exiting a trade, it is better to forget about it; it will not do you any good. Knowing when to enter a trade is crucial, but it is even more important to exit correctly. So, let’s get started. Let’s define our main points:
You should consider what type of investor you are. If you want to buy long term (hold), you will wait for support areas to accumulate positions.You won’t mind the price fluctuating a lot. However, If you enjoy trading (swing trader), you should be clear about where to place your entry, stop loss, and risk.
In either case, you can take advantage of the opportunities provided by the two key points I’ve marked on the chart below:
- If you are pregnantYou might consider using the area around $52,000 or $60,000 to accumulate more BTC, which would be ideal if the price finds support there again. Alternatively, you can wait for it to revisit the $50,000 to $45,000 levels. As you know, anything can happen in cryptocurrencies, so although the probability of that happening is less, the price could revisit the $17,000 area.
- Another option is to try to capture the swings by trading.. Move between support and resistance areas, or vice versa. Here, you can wait for the price to rise from $60,000 to the next resistance level at $70,000, or even higher targets like $80,000 and $90,000, which are Fibonacci projection levels calculated from the last push (where the price is likely to stop).
3- Weekly average
As of today, we can (and should) adjust our technical indicators to ensure their usefulness. Even if the weekly moving average is not perfectly configured, it will not lead us to major disasters. In any case, we have configured it to make significant differences in terms of accuracy and usefulness. The blue line indicates bullish moments, while the red line depicts bearish moments. Let’s see what happens in this case.
The weekly average has been bullish (blue) for over 8 months.indicating that we are still in a short-term uptrend. Currently, there is not much tension between price and value, so the price is expected to bounce a little, find support, and then resume its bullish momentum strongly. Do you see that clearly? What decision will you make?
4- Differences
When divergence occurs, something is fishy, or something is not right because the price and something inferred from the price do not match. If you want to learn how to read an indicator when looking for divergence, click here. Now, let’s start by identifying those discrepancies between price action and a technical indicator on a Bitcoin chart.
Moving Average Convergence Divergence (MACD)
There are few instances where MACD divergences appear on weekly charts. However, when this happens, you should be careful as major changes are looming. Let’s analyze the Bitcoin chart. What do you notice at first glance? Share your thoughts with us. 😉
The price continues to move within the sideways area we discussed earlier, and the indicator starts to decline, which is not in line with these new highs. We may see a bearish divergence. Remember, this does not necessarily mean that the price will drop immediately, but it does indicate that the bullish momentum may be weakening.
Relative Strength Index
The RSI is moving between 0 to 100 Indicates whether The price is expensive or cheapTwo scenarios can happen:
- the price It’s too high.leading to overbought conditions (Levels above 70).
- Price drops below 30 (oversold or Very low).
The RSI on this chart is indicating that the price is high and overbought, while the price continues to rise. Currently, the price is in a sideways zone, but the RSI is starting to slow down, indicating weakness and bearish divergence. Remember that the RSI, as an oscillator, tends to behave this way in strong trends and often signals potential divergence early on.
Triangles
Technical analysis of cryptocurrencies includes different patterns, one of which is triangles. There are different types such as ascending triangle, descending triangle, and symmetrical triangle. Which one is in the Bitcoin chart?
So far, we do not see any triangle formations, and the price continues to experience a strong upward movement with slight stops.
4- Fluctuations
Volatility is often a sign that the price is accelerating in a certain direction. To gauge Bitcoin’s current volatility, let’s examine Japanese candlesticks. Remember, interpreting candlesticks in trading is a matter of common sense.
the Larger candles represent rapid price movements.While smaller ones indicate quieter areas.
On the daily chart, I have marked (orange rectangles) the recent periods of high volatility for Bitcoin. As you can see, volatility has started to decline in recent weeks. The strong hands have been selling somewhat, as evidenced by the strong red candles, which, although they did not cause significant declines, did stop the upward movement during the sideways trend.
An interesting observation comes from the current area. There have been several days of bullish swings followed by a day of decline. This could indicate that strong hands are pushing the price higher but are also selling off part of their holdings. This pattern could be a clear indication of accumulation to support the uptrend.
Bitcoin climate forecast
If you’ve reached this point, it’s because you already understand what’s going on. You’re clear on what Bitcoin is, but you want to know what’s going to happen to it. We’ll tell you what might happen from here on out. However, we can’t promise that it will happen. Here’s what we can infer from the various patterns, But it is not 100% reliable.
The monthly chart is clearly bullish, while the weekly chart shows a sideways trend. The key will be for the price to continue accumulating in this area to gain strength and possibly take off higher. The price action and structure show that there is underlying strength to continue higher.
Personally, with all the FOMO going on right now and people becoming more reliant on this technique, I think it is very likely that we will see more bullish action, especially if the price can break out of the sideways range and into the upside.
What will you do? Will you buy now? Will you wait until you see an interesting correction to enter?
If you liked this analysis, here is the analysis and forecast for Ethereum.
If you liked this analysis, here is the analysis and forecast for Ethereum.
commerce Bitcoin
As you already know, trading with Bitcoin is a delicate matter. Buying, selling and taking advantage of price changes is not a game. You need to educate yourself to do it effectively and profitably. Anything else will just waste your time and money. Do you really want that? Don’t you think life should be enjoyed day by day as if it were your last?
do not delay. If you want to learn how to do it right, practice with us, and remember to store your bitcoins in the world’s most secure Material Bitcoin wallet. 😎 And of course, don’t forget to monitor the Bitcoin chart with us. The more you practice, the better you will become. But don’t buy just because the price hits a support level; always wait for confirmation.
If you have any doubts or questions, join our Telegram channel!
For more in-depth analysis, check out our Ethereum technical analysis.
