The Bitcoin price is up slightly this week from last Sundays close, however, the price is still below last weeks all-time high of $19,700.
Bitcoin had a phenomenal run last week with the price rising from lows to highs by nearly 80%. This week’s price action has been more modest as price consolidates after its massive move.
A handful of brokers are set to start offering their customers Bitcoin futures this week, and there is some speculation as to how this could change the market.
Bitcoin futures will provide a regulated environment for a lot of big money that has been sat on the sidelines and also the ability to go short.
As always the price action is the best guide, so let’s take a look at some Bitcoin charts:
BTC/USD – Weekly Chart
Bitcoin continues to move higher in a parabolic curve pattern which can be seen clearly on the weekly chart.
Price has pulled back after nearly hitting $20,000, so this would be a key area to break above for those who are bullish.
The price is now very extended from its moving averages which have acted as support historically. It’s worth watching how the price behaves around the 10 and 20-week moving averages if we see a deeper pullback. A strong break below these would be a longer-term bearish scenario.
BTC/USD – Daily Chart
You can see on the daily chart that the price action has been choppy the last six days after hitting resistance at $19,700. It pulled back quite sharply finding support at $13,500.
The ideal situation for those who are bullish is for the price to consolidate between $19,700 and $13,500 and form a bullish pattern like a flat base, channel, cup with handle or triangle pattern.
Other possible areas of support are the 50 and 100-day moving averages which have acted as support historically. A strong break below these would be a bearish scenario and a break below $13,500 a warning sign.
BTC/USD – 4-Hour Chart
You can see clearly on the 4-hour chart where price recently found resistance and support. For those who are long Bitcoin, you want to see a bullish pattern form within this area.
The 4-hour chart can provide entry points not seen on the higher timeframes like the small ascending triangle you can see on this chart. This would have been a good entry point for the day and swing traders.
Key areas to watch:
- $19,700 – Price needs to break above this to continue the uptrend.
- $13,500 – Area of support and short-term warning sign if price breaks below.
- 10 & 20-week moving averages – Possible areas of support on a pullback. A strong move below would be bearish.
- 50 & 100-day moving averages – Possible areas of support on a pullback. A strong move below would be bearish.
- Chart Patterns – Look for patterns to form on the daily and 4-hour timeframes as price consolidates.
Will Bitcoin break through $20,000? Will Bitcoin futures change the market dynamics? We would love to hear your opinions in the comments section below!
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