Bitcoin price may reach $8500 before a final downward push to weekly 78.6% Fibonacci Level before the continuation of the uptrend.
Bitcoin Price Analysis
Weekly Bitcoin price against USD gives us some interesting insights such as follows:
- Weekly prices are tightly following the Flag pattern as shown in the below given weekly chart
- BTC price got rejected by this trend so far; trendline is also intersecting with the 9 days SMA and previous weekly resistance (orange dotted straight line)
- Most likely prices may get rejected around $8150 and Bitcoin may see one last downward push towards 78.6% Fib Level at $5437
- Since 78.6% Fib level is closer to the 200 days SMA, Bulls will defend this support with all might, any breach below this will end this Bullish Trend and BTC price may bounce hard with the uptrend continuation
- Weekly BTC prices are still above 200 days SMA (solid red line), uptrend still intact
- Current Weekly prices are supported by 49 days SMA (solid green line) and the next resistance is at $8171 which is 9.26% price movement from the current price
Laying Ichimoku Kinko Hyo System on the above chart gives us the following insights:
- Bearish TK cross (Tenkan Sen crossing Kijun Sen downwards) above Kumo.
- Tenkan Sen was unable to hold the BTC prices and now prices are below the Tenkan Sen (blue line).
- Chikou Span (solid orange line) fell below the prices; bearish.
- Senkou Span A (solid green line of Kumo) as expected acted as a resistance, and the Bitcoin prices bounced. As evident from the current price candles, this bounce is weak and there is a strong indication that the prices may fall below further after a short squeeze to $8000 to $8500 levels.
Analyzing the BTC price movements further with 1 Day Time Frame with Ichimoku, Trend lines, and SMA (Simple Moving Averages) following things can be observed:
- Daily Bitcoin price is currently making Higher Lows and moving along the Trend line, as shown in the chart given below with a solid green line.
- Prices are supported by the Tenkan Sen at present, and there might be a short squeeze from the current levels to a weekly resistance line at $8063.
- 9 days SMA (blue line) and 21 days SMA (white line) are supporting the current daily prices, and the next resistance is at $8246, which is 49 days SMA (green line).
- BTC prices are trading inside the Flag; we might see a short squeeze first towards $8000 to $8500 price level and then one last downward push towards $5437, which is 78.6% Fib level on a weekly chart.
- Day Traders can reap the benefit of the possible short squeeze in play with 9.26% potential from the current price level.