CEO of Bear Market
CEO of Bear Market 3 minutes reading from Bitcoin

Bitcoin Weekly Update: BTC Has Best Week of 2018

Weekly Bitcoin Update Bitcoin BTC First, these weekly posts are more for me the hash out my thoughts. They are not trading advise.

Second, I have changed the color of the candles to take some of the emotion out of my analysis. The dark candles are the price moving down and the white candles are moving up. Now, the chart.

BTC had it's best week this week since mid July, breaking through resistance at 21k.

Most of this move was made on Friday and continued into Saturday. Although the day isn't over, Sunday's price action, so far, has stalled forming a doji candle. A doji can point either to a reversal or just a pause in the trend. But, in the time frame shown here,

the majority of doji lead to reversals (look at the tops and bottoms of each move and note the similar candles to today's).

The test now, assuming BTC reverses here, is can it turn the 20.5-20.6k range from resistance into support. If it can hold that price range,

then the next logical price range to watch is 22k. If it cannot hold the 20.5k range, the next stop below that is 19.8-20k range.

One thing to note is that the price range is approaching the large multi-month trend line (second screen shot).

This is an important trend line and will likely exert a lot of downward pressure on price. It also lines up with the 22k price range depending on how quickly BTC approaches that range.

Also important to note, BTC is approaching the underside of the bear flag it formed beginning June 18 and completed on Aug 26. This is technically a throwback and will likely cause downward pressure on the price.

In summery, I think this was a nice bear market rally and will be sort lived. I think BTC likely continues to rally to 22k after a pull back to 20.5. Then a move back to the range lows of 18k. TLDR: the price could go up or down from here.

This post is based on this twitter thread.

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