Bitcoin (BTC) continues to amaze and is still able to strengthen. I assumed during the Christmas holidays the price will remain more in party consolidation, but in the end the market made a breakthrough.
The volumes are naturally weak, which is due to the fact that they are holidays. If anyway end of the year there will be no major fall, the beginning of the new year could probably be immediate growth.
When one looks at higher time frames, there is essentially no direct indication that there should be a purification. Of course, we know that the market is extreme burnt out, but in theory it can theoretically last for several more weeks. In addition, Bitcoin needs to test some price levels and create a new balance in a satisfactory size.
As the price rises, no one can be sure what real support is during the correction. Which is quite an awkward situation, because we’re basically blind. In any case, if the exchange rate rises at this rate, there is a growing risk that the forthcoming clean-up will be much deeper than we were used to previous bull cycle. Think of it as a stone that you throw vertically and there will be several layers of polystyrene on the ground. The higher you throw it, the more layers the stone is likely to break through on impact. In reality, this is influenced by x other factors, but we are not in a physics class.
Current situation at 1W TF BTC / USD
On the price chart with a weekly time frame, we have just grown visually just a drop. In fact, it turned out that the annual pivot level of R3 as resistance to turnover is not enough. However, the market reacted with R3, as did R2. Therefore, at least we know that the calculated pivot levels of the market to takes some account.
I would like to remind you again that there is a gap on the Volume profile in the price range of USD 19,900 – USD 22,222. The market is trying to be effective and therefore tends to fill these gaps. Therefore, if we calculate with the filling of the mentioned gap, the price would be reflected first to 19,446 USD, which is approximately the original all time high.
Otherwise, everything else in the old, golden pocket on the Fibonacci sequence is at the S / R limit of 12,000 USD, the curve sliding average at S / R level $ 14,500. At least the moving average should test the market, but it’s hard to say where it will happen. Before the correction, the glider can climb up to $ 17,163.
Indicators
The current weekly RSI is 89 points, so we are in close proximity to two highlights from the last bull market, which were formed at approximately 90 points. If the market manages to beat those 90 points, we may see prices of around $ 30,000 shortly. However, the MACD curves are close to the peak formed at the end of the previous run.
Current situation at 4H TF BTC / USD
The Bitcoin exchange rate was without a trend within the drawn trading zone for several days. Thanks to this price action, a new smaller market equilibrium was created, after which the bulls could push the price higher again. At these moments, however, a pattern was created in the graph, which, however, has a bearish background – rising wedge.
If the department were to apply, we would expect a decrease of about 10%, depending on its size. Which is not so hot and probably won’t scare anyone at this market stage. It is definitely important to take it here in any case dashed rezistenční trendy, which the course has been respecting for several months. If it broke, we could witness another crazy spike. Otherwise with the local balance at point controls (on the Volume profile) count on strong local support.
Indicators
According to the RSI indicator, Bitcoin did not actually show anything extra, because so far it has not been possible to exceed 70 points. The largest pumps peak just above the mentioned limit level. The same is true for MACD, nothing special, weak momentum.
In conclusion
As the monthly and annual closes are relentlessly approaching, it is extremely important how the price closes. For a few more days, the bears still have a chance to assort the December candle into a not very favorable form. The beginning of the year would therefore be more bearish.
If none of the above occurs, the price can easily continue to rise. However, we must not forget that market overheating increases proportionally with price. The situation is in fact terribly dangerous, which retail does not admit at all. The more aggressively the price rises, the more you should be afraid.
ATTENTION: No data in the article is an investment board. Before you invest, do your own research and analysis, you always trade only at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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