Bitcoin (BTC) seems to find its bottom for now at $7221, which is a weekly 61.8% Fib level. Bulls successfully defended its position, and now it is aiming for $8499 resistance, which is a weekly 50% Fib level. Good opportunity to ‘Long the Corn’*.
*Corn: Bitcoin is also known as Corn in the Slang term in the Crypto community.
Bitcoin Price Prediction
Daily BTC prices are back to the mean average after spending days in Lower Bollinger Band (red line), and currently, daily prices are supported by the weekly 61.8% Fib level at $7239. Upper Bollinger Band is at $8141, which almost coincides with the resistance line, which previously acted as strong support at $8039.
Daily prices are supported by 9 days SMA, and it is trying to do a successful S/R Flip of 21 days SMA. Previously made Higher Lows are still valid and look like the Bitcoin price is going to test previous support now resistance at $8039, which is also a 38.2% Fib level, and this area is close to 49 days SMA (green line) at $8277.
Laying Ichimoku Kinko Hyo over the same 1-Day Time frame following things can be observed:
- The overall price is under the Kumo, bearish by the text standard, but early signs of reversal can be seen.
- Previously, Bitcoin prices were below Tenkan Sen (blue line), and now Tenkan Sen is acting as a support.
- Prices are just below the Kijun Sen, and it is squeezed between Tenkan Sen & Kijun Sen, violent movement either up or down is in the play.
- Since, Current BTC prices are also supported by the weekly 61.8% Fib level, which is strong support for the daily prices as of now, betting that the prices will go upwards towards Senkou Span A to test the resistance at $8533.
- It looks like the Bitcoin price has found its bottom at weekly 61.8% Fib level ($7239)
- Early signs of reversals are in play, BTC price did a successful S/R flip of weekly 61.8% Fib level, and the currently supported by Tenkan Sen and 21 days SMA.
- Higher lows made previously are still intact.
- Weekly 50% Fib level at $8499 is the next big resistance for the BTC.