Bitcoin Weekly Chart

After weeks of consolidation, Bitcoin has recorded extremely strong price performances over the past two weeks.

The price has surpassed the most important level for price action in 2018 at $6150.

Price has managed to move to form new 2019 highs, and many analysts now have an extremely bullish outlook given that the price has surpassed $6150.

This is an area where the price found support repeatedly in 2018 before breaking sharply below in November.

The long-term momentum has been on the side of buyers with both the weekly MACD and RSI increasing.

Bitcoin Daily Chart

The price increase occurred despite a double bearish divergence forming on the daily chart.

The double divergence is a bearish trend reversal pattern, but with the longer term weekly timeframe indicating high amounts of buying pressure, it was unlikely to signal a reversal.

The current high recorded today is $6984 indicating that selling pressure is coming into the market as price action approaches the $7000 level.

$7000 is a round psychological number, and it is not surprising that selling pressure is coming into play close to this point.

Price currently trades at $6790, but it is likely that the price will continue its increase given the high amounts of buying pressure.

The market structure is also extremely bullish at the moment with higher highs and higher lows forming.

The candles are also forming with long bodies and little wicks indicating strong upside movement.

Dogecoin Daily Chart

Dogecoin fails to mirror the bullish performance being recorded in Bitcoin.

After recording increases last week, Dogecoin has reversed all increases this week.

Although Dogecoin managed to rise above $0.00268, a level of resistance which formerly acted as support, it dropped back below this week and is meeting resistance at this level once again.

Yesterday’s candle formed as a Doji and today’s candle is currently also forming as a Doji.

This reflects high levels of uncertainty from traders as price trades below $0.00268

However, selling momentum has been increasing with the daily MACD and RSI declining.

Dogecoin Daily Chart

Dogecoin has already tested the $0.00268 level a number of times in recent price action but has failed to break above.

Each test serves to weaken the level with fewer sellers to provide resistance on each test.

Key Takeaways:

  • Bitcoin has surpassed the most important level of 2018 moving to form new highs for 2019.
  • Price action is currently finding some selling pressure close to $7000 but is likely to surpass this point on a retest given the high levels of buying pressure.
  • Dogecoin has been recording a poor price performance over the past week reversing all of the increases of last week.
  • $0.00268 is currently the most important level to monitor for Dogecoin with the daily candles forming as Dojis below this point.

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