Last week, bitcoin hit a new record, but the engine is starting to falter. Can we expect a new record soon? Or will the cryptocurrency also decline in the coming weeks? Quickly to the graphs!
Resistance at $ 60,000
Below you look at the weekly chart of the bitcoin price from October last year to now. Bitcoin has been struggling to break through the strong resistance of $ 60,000 (49,817 euros) for almost two months. On a weekly basis, the price has found support for the time being at 51,000 dollars (42,339 euros), the middle blue line on the chart. If bitcoin sinks even further away, the bottom of 45,000 dollars (37,358 euros) comes into the picture.
We will stay with the weekly chart for a while, and zoom out a bit on the chart. You are now looking at the weekly chart from September 2018. It seems that momentum is turning, you can see that in the price chart and the two indicators below it.
The graph with the purple line is the Relative Strength Indicator (RSI), which indicates the strength of the market. We now see divergence between the bitcoin price and the RSI. This means that the price is moving upwards, while the RSI is falling. This is often a sign that the positive momentum is turning.
Below that you can see the MACD, this indicator also gives you an idea of the momentum. The green bars are getting lighter, which means that the positive momentum of the past weeks is weakening. You can also see that the blue line almost dips below the orange line. Is this happening? Then you speak of a bearish cross. This is often a precursor to a longer period of falling prices. Italy Price prediction Crypto is popular.
The rates are the same as the weather: you can roughly predict where it will go, but in the end it never rains when you bring your umbrella. These indicators indicate that the price may fall. But will bitcoin manage to recover quickly? Then there is no need for a bearish cross.
Bitcoin is falling due to support
Moving on to the daily chart, we see that bitcoin is still on an upward trend. But there are also some signs on the daily chart that this great trend could turn. For example, until a few days ago it was still possible to build a higher bottom. First around $ 45,300 ($ 37,613), then at $ 51,226 ($ 42,534) and then at $ 55,855 ($ 46,377). But for the first time since February, bitcoin shows a lower bottom.
In addition, the course has been broken by an important support. The red line on the chart is the moving average of the past 50 days, also known as the 50-day moving average. Until recently, this was still strong support.
The next fulcrum that comes close is the 100-day moving average, the orange line on the chart. It now moves around $ 49,400 (EUR 41,020).
Double bottom gives hope
All very pessimistic, is there nothing positive to report? Besides the fact that the terraces will reopen next week, fortunately we also see something beautiful on the four-hour graph. In the short term, bitcoin will find support at $ 53,500 ($ 44,438). This is an important price, bitcoin has a total market value of more than 1 trillion dollars (830 billion euros) at this point.
In addition, there is a double bottom, and that is also a positive sign. You can see that bitcoin hits the blue line twice. Can bitcoin pick up the upward trend again? Then it is important that the price breaks through the falling black trend line. Netherlands Crypto website is popular.
What do we expect from bitcoin?
Mixed signals! The indicators show that bitcoin could decline for a longer period of time. But in the short term, we may have seen the bottom again. What do we expect from bitcoin in the coming days? We describe two scenarios for you: bullish (positive) and bearish (negative).
Is “the $ 1 trillion line” strong support? Then bitcoin can make an attempt to break through the black trend line, currently around 57,500 dollars (47,765 euros).
The next challenge will be $ 60,000 ($ 49,842). If bitcoin closes the week above the top blue line, that is a strong signal for the future.
Is the price dropping? Then we find the next support already at 50,600 dollars (42,030 euros), the bottom blue line on the chart. After that, 45,000 dollars (37,379 euros) can provide support.