Bitcoin Price Weekly Outlook
That’s about it. What a terrible weekly closing for Bitcoin. The bitcoin price dropped last week after hitting $98,000 the previous week. It closed near its lows of $86,588. The bulls will require a great deal of support to be able to get out. Bears aim to keep their momentum going into this coming week and break the support level of $84,000 once and forall, and drive the price as low as possible to $70,000. The bulls will have to defend $84,000 as never before in order to prevent a collapse this week.
Support and resistance levels now
Bears have returned to town. The $87,000 level of support is no longer there, and it’s possible that $84,000 will not be tested again. Price should move down to support levels of $72,000 to 68,000, if bears are able to manage a close below 84,000. From there we are likely to see a bounce, but if the price eventually breaks down, then it will be at the Fibonacci Retracement Level of 0.618 located at $58,000.
Bulls return to their starting point after recent gains. The bulls have to reclaim 88,000 dollars first. The bulls will then try to reach $91,400 and $94,000 again. Above this level, $98,000 is a strong resistance. The bulls may be able to break above $98,000 but it would take a very slow move up until $103,500.
This Week’s Outlook
Bulls will be tested this week. The price will drop to new lows if the $84,000 target is not met this week. The earnings of many large companies are due to be released this week. Strong results could support the Bitcoin price and help it maintain its major levels. Even though correlations between stocks and bitcoin have been low in the past, this does not mean that it will be benefited by any market upswing. The odds are in favor of the bears for a break-down this week.
Market mood Bearish – The bulls showed some strength in the prior week for a slight advantage, but the bears took full control last week, driving the price right back down to the lows.
These are the next couple of weeks
Recenty, the chart of weekly time frame was expecting a bounce. It got it. This past week’s price action, however, gave a strong indicator that this bounce might be over. New lows could be on the way as the price ended below the SMA of 100 weeks. While it appeared that it would see a cross in the bullish direction last week, it was blocked by bears. Relative strength index is now back below 13 SMA. It’s still in bearish territory.
Terminology Guide
Bulls/Bullish: Investors and buyers who expect the price of the stock to rise.
Bears/Bearish: Expecting the price of a product to fall.
Support level or service: Support is a level where the asset’s price will initially be held. The weaker support becomes, the greater the likelihood of price failure.
Level of resistance The opposite of support. This is the level at which the price will most likely be rejected, initially. The resistance becomes weaker as it comes into contact with the price.
SMA: Simple Moving Average. Simple Moving Average. For RSI it’s the average value of the strength index over the specified time period.
Oscillators: Technical indicators are those that change over time but usually remain in a range between two levels. They oscillate, therefore, between low levels (which represent oversold situations) and high levels (which indicate overbought circumstances). E.G., Relative Strength Index (RSI) and Moving Average Convergence-Divergence (MACD).
RSI Oscillator: You can also find out more about the following: Relative Strength Index oscillates between 0 and 100%. The relative strength index measures both the rate of price movement and the changes to the pace of price movements. When RSI is above 70, then it’s considered to be too overbought. RSI values below 30 are considered as oversold.
MACD Oscillator: Moving Average Convergence-Divergence is a momentum oscillator that subtracts the difference between 2 moving averages to indicate trend as well as momentum.
Fibonacci Retracements & Extensions These ratios are based on the so-called golden ratio. This is an universal ratio in relation to nature’s growth and decay cycle. Golden ratio based on constants Phi (1.618) and phi (0.618)
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Source: bitcoinmagazine.com
