Conclusion for today’s Bitcoin Analysis:
Price closing above its long term bearish trendline indicates the potential for higher prices in Bitcoin.
A logarithmic scale is used in today’s Bitcoin analysis with a candlestick chart of the Daily timeframe examined. Previous analysis and forecast was posted here. The use of the Daily timeframe versus intraday in this case enables the long term impact of supply and demanded to be scrutinized and serve as a guide for future price development.
Price peaks of 17,252.0 and 7,788.0 on January 6, 2018 and October 15, 2018 respectively are used to connect and establish the long term bearish trendline in Bitcoin that has lasted over 16 months.
The rest of this analysis focuses mainly on price low of 3,215.20 established on December 15, 2018 to current date. Resumption or continuation of the bearish trend in Bitcoin that has been established since price peaked at ~19,891 on December 17, 2017 seems to have dissipated, even it temporarily.
Evidence is due to the consolidation in price that took ~14 weeks from 3,215.20, leading to an eventual breakout and/or price close on April 02, 2019 above the long term bearish trendline. This implies a trend change from bearish to a sidetrend or uptrend at best.
5,984.10 and 5022.20 represents major resistance for Bitcoin above the long term trendline and therefore needs to be monitored. Conservative long (buy) strategies involve considering initiating an order upon price close above the upper boundary of resistance (5,984.10)
In summary, the 3 crucial things to keep in mind based on Bitcoin analysis for today are the following:
- Breakout above the major trendline (weakens bearish power).
- Resistance between 5,984.10 and 5,022.20.
- Price close below 3,215.20 indicates resumption of the bearish trend from the December 17, 2017 price peak.
Sign up now for full access to our premium research and analysis to learn more about Bitcoin analysis, other cryptocurrencies, stocks and Foreign Exchange (FX) pairs.
Interested in Cardano technical analysis (ADABTC)? Checkout our previous free blog post here.