Bitcoin Retest of Logarithmic Downtrend
Looking at the linear Bitcoin hourly chart on Bitfinex, we will see the critical level we are at right now at the purple horizontal support of $8,912.
Price had popped above this level to $9069 in the early hours EST Saturday morning, the highest levels seen since March 21st. Price then came down and touched an upward trend line in lime green that I have started following.
This line captures the highs on the 20th and the lows on the 21st, 22nd and today, where price has now pushed back above it again. With the purple horizontal support discuss this forms a a bearish wedge, where the typically pattern would be to break downward.
Given the head fakes this market has been providing, I want to venture an educated guess that it continues to climb, since that has still been the trend for the past week. However, wait till we get to the logarithmic look.
That maroon down trending line is the logarithmic downtrend line that the price of Bitcoin is now above and even retested on Sunday. As a bearish target I could see that line being tested again around the $8,600 level, where the blue box is in the next few hours and then an extended rally. Getting a daily close above this will be key.
The yellow line is also a slightly downward sloping trend from the lows back on Jan 17th and price is battling to stay above there too.
RSI, %R, and MACD are all fairly neutral, but there looks to be a few higher lows, there which could indicate some bullish divergence coming up. Maybe it will be a pop back up to the $9,069 level.
I am also going to a include a snapshot of the 4hr to help with visualization.
Ok the daily linear chart of Bitcoin on Bitfinex, you can see everything better but it’s not a whole lot of new information.
Volume is dropping off here on the daily candle pending some big move over the next few hours here, which certainly could happen.
The 55 EMA is finally crossing under the 8 day EMA, which is a good sign, but as evidenced by the fakeout in the market in early March the 21 EMA and 34 EMA need to get above the 55 EMA too for bullish confirmation.
That 55 EMA level is at $8,445 and really could use the next few days to work off the overboughtedness (fun faux word) on the %R and bring the RSI back down.
The resistance at that purple horizontal level here is strong as you can see from the wicks going up through level here, so maybe we will get a pullback.
And here we go, the log chart of Bitcoin on Bitfinex and the thing I am looking at here, is that price is above that maroon downtrending line.
That is definitely bullish, but price almost has to retest that line in the blue box around that $8400 level again and explode higher for a successful breakout. Yes, I do think the bottom in, but given the volatility and some of the shenanigans in this market with the whales. I believe that anything could happen.
This is a critical juncture to look out for this week.
Price had popped above this level to $9069 in the early hours EST Saturday morning, the highest levels seen since March 21st. Price then came down and touched an upward trend line in lime green that I have started following.
This line captures the highs on the 20th and the lows on the 21st, 22nd and today, where price has now pushed back above it again. With the purple horizontal support discuss this forms a a bearish wedge, where the typically pattern would be to break downward.
Given the head fakes this market has been providing, I want to venture an educated guess that it continues to climb, since that has still been the trend for the past week. However, wait till we get to the logarithmic look.
That maroon down trending line is the logarithmic downtrend line that the price of Bitcoin is now above and even retested on Sunday. As a bearish target I could see that line being tested again around the $8,600 level, where the blue box is in the next few hours and then an extended rally. Getting a daily close above this will be key.
The yellow line is also a slightly downward sloping trend from the lows back on Jan 17th and price is battling to stay above there too.
RSI, %R, and MACD are all fairly neutral, but there looks to be a few higher lows, there which could indicate some bullish divergence coming up. Maybe it will be a pop back up to the $9,069 level.
I am also going to a include a snapshot of the 4hr to help with visualization.
Ok the daily linear chart of Bitcoin on Bitfinex, you can see everything better but it’s not a whole lot of new information.
Volume is dropping off here on the daily candle pending some big move over the next few hours here, which certainly could happen.
The 55 EMA is finally crossing under the 8 day EMA, which is a good sign, but as evidenced by the fakeout in the market in early March the 21 EMA and 34 EMA need to get above the 55 EMA too for bullish confirmation.
That 55 EMA level is at $8,445 and really could use the next few days to work off the overboughtedness (fun faux word) on the %R and bring the RSI back down.
The resistance at that purple horizontal level here is strong as you can see from the wicks going up through level here, so maybe we will get a pullback.
And here we go, the log chart of Bitcoin on Bitfinex and the thing I am looking at here, is that price is above that maroon downtrending line.
That is definitely bullish, but price almost has to retest that line in the blue box around that $8400 level again and explode higher for a successful breakout. Yes, I do think the bottom in, but given the volatility and some of the shenanigans in this market with the whales. I believe that anything could happen.
This is a critical juncture to look out for this week.
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