Important Stocks To Watch - Stocks At Or Near 50 MA, 200 MA, Chart Patterns

Technical Analysis Of Bitcoin

Analysis of Bitcoin's chart. Is it in an uptrend or downtrend and where is the support and resistance.

October 18 2021

Bitcoin is on the verge of making new all time highs. The resistance (red color) on the left is being absorbed and there is no reason why Bitcoin will not go higher. If we take a measured move of the move up around July to September we can get a target of around 64000. That is the purple color arrows that I have drawn.

However, recently Bitcoin had a nice run up and set up a small congestion area. I have highlighted the area in green color. That will be the new support area. That congestion actually help to absorb quite a lot of resistance or supply from the left.

Since this green area is a support area, as long as Bitcoin stays above this area, then it is likely to make new highs soon. There is also a bullish cross and this could set up a nice run up.

The chart above is the weekly chart of Bitcoin. There may be some who are worried that there will be a double top in Bitcoin. However, since there is support around the 52000 area, then it is likely that the double top will not work. 

This means that there is a higher possibility for Bitcoin to go higher rather than being hammered down by a possible double top. Bitcoin is above its weekly 20 MA, 50 MA and 200 MA. This means that it is in a nice bullish mode. I would advise you to pay attention to the weekly 20 MA.

As long as Bitcoin stays above the weekly 20 MA, then you should remain bullish on Bitcoin.

If we take a look at the weekly chart of GBTC, Grayscale Bitcoin Trust, we can see that its chart is setting up a weekly cup with handle. This is a bullish continuation pattern and GBTC just broke out of the handle. 

The handle will be a new support area and as long as GBTC stays above the top of the handle, then it is likely that Bitcoin will continue to go hgiher.

October 7 2021

Bitcoin's price has recover quite a lot since the sell off. It is now near the all time high price. In the past Bitcoin came crashing down after it made a head and shoulders top. Head and shoulders top usually gives us quite a lot of resistance because there is a lot of price congestion in that area. Many people who bought at the price around there were losing money and thus any rise to that area may quickly be met with selling.

Which is why the last time Bitcoin rose to that area, it corrected. However, Bitcoin was able to go above the most recent highs and that area will now be a new area of support. I think the last time it rose to the head and shoulders, it would have absorbed some supply. Therefore, it is possible that Bitcoin may continue to rise.

Watch the green area that I have highlighted. If Bitcoin stays above here, then it is likely it can go up without another correction.

Bitcoin is in a 60 min uptrend and for the short term the trend is up. After breaking out of the consolidation it quickly rise up to 54000. I think this short term 60 min trend is a bit tired which is why Bitcoin dropped below the 60 min 20 MA. It may perhaps drop below the 60 min 50 MA and that is something to watch.

If Bitcoin drops below the 60 min 50 MA then it is likely we might have a correction. So watch the 50 MA carefully. Ideally we want to see Bitcoin trade sideways a bit and then have consolidation breakouts in the 60 min chart. This will help to fully absorb the supply from the large head and shoulders resistance which I showed you in the earlier chart.

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