Over the past two weeks the weekly chart of Bitcoin’s price has proven to be the most accurate in terms of predicting future movements. Will it be the same this time as well? We take as many as three different perspectives under the magnifying glass!
Bitcoin on a monthly basis
To begin with, we will present the bull case. The monthly chart looks especially impressive and gives a lot of optimism. It is worth paying attention to it, as October has just ended, which has resulted in a new candle.
Thus, we can see that the price of BTC rose by 5.52%. After a month of banishment below a key level, which is the peak of the 2017 cycle, Bitcoin has once again returned above this support. The MACD presents an excellent picture showing a clear turning point. The first green candle of the TD Sequential indicator also appeared. The bullish divergence of the RSI is also clear, although it has been visible on this chart for quite some time.
The monthly snapshot is by far the most optimistic. However, let’s not forget that it is also very broad. This means that any price movements in either direction may not even have an impact on the indicators. Therefore, we move on to the next interval.
Bitcoin on a weekly basis
A week in which BTC rose in value by 1.61% was followed by another, also in green, of 5.38%.
The MACD of the weekly chart has maintained bullish momentum for quite some time. Interestingly, the consolidation in which BTC has found itself only strengthens it. It is important to note that after six weeks in which Bitcoin traveled at the lower limits of support, it has once again returned above the peak recorded in 2017. Nevertheless, at the same time, the first rather important warning factor appears, which is difficult to pass by. On the RSI indicator, we can clearly see that Bitcoin has reached the downtrend line, which is an important resistance for it. Importantly, this resistance has held for a bagatelle 94 weeks. Such an element definitely does not inspire optimism and should cool down the positive emotions generated by the recent increases. After all, it may turn out that the price values at which BTC is at the present moment will prove to be a turning point for it.
Bitcoin on a daily basis
With that, we move to the lowest of the intervals presented today. Bitcoin on the daily chart looks the least encouraging. It seems to be weakening after the recent rallies. The first clue here is the MACD, which has turned decisively downward, and so far, we see no signs of its potential deceleration. A slight bearish divergence has also appeared. However, it is so small that it may remain completely unaffected by the price action. Meanwhile, with the blue line, we marked the 100-day moving average, which at the moment is a clear resistance for the price. Its breakthrough remains crucial for Bitcoin’s uptrend to continue. On the other hand, in the current consolidation, we have already seen its rejection twice.
In summary, different intervals can therefore result in different conclusions. A monthly snapshot indicates that Bitcoin’s current price levels, may provide an excellent place to average the purchase price. Meanwhile, the weekly perspective, as well as the one-day perspective, create uncertainty. Based on these, further declines remain possible.
