Bitcoin Market Overview Based on Daily Chart

In the previous post we think about possible price movements based on the weekly chart. This time frame confirms that the correction movement is over and we should be ready to see the continuation of the main uptrend. But what about the lower time frames? This time we talk about Bitcoin based on the daily chart.

If you look at the daily chart you see that the price still stays at 9000.00 level and it can’t move higher or drop lower. We can see the yellow line which is SMA100 and it forms a resistance zone with 9000.00 level which can hold the market. The price has been moving in consolidation for the 3d day already. Will it be able to move above this resistance zone? DMI is bullish and confirms the power of bulls. MACD lines support the upward movement. Based on these signals from indicators we should expect for further upward movement to 10000.00 level at least. When the price breaks SMA100, it will give us a signal confirming a trend reversal. Only 10000.00 important psychological level will be a barrier for further upward movement. But when price can break this resistance too, we’ll get everything for confirming the trend reversal and the beginning of a new uptrend.

Alternative variant is: the price can’t break the resistance zone and it bounces from SMA100. RSI is overbought and it can give a confirmation for possible price reversal. If so, the market can drop lower to 8000.00 support level at least. This support can be a starting point for a new upward movement if we get a reversal signal. But if 8000.00 support can’t hold the market, the price will move lower in the direction of the strong support zone formed by 6500.00 and 6000.00 levels. Price action in this zone will show us the further possible market movements. But such falling can be realized only by strong bears with fundamental support. Now the market looks bullish and the higher time frame supports the upward movement.