Bitcoin Technical Analysis Update - Week 36
With a weekly close above a key level, Bitcoin is still bullish and could re-visit 60,000 soon! Let's see what we can expect this week.
Summary
Previous Analysis
VPVR & POC
Fibonacci Levels
Weekly Close
Fear & Greed Index
Weekly Plan
6.1 First scenario
6.2 Second scenarioOverall
Previous Analysis
In my last Bitcoin technical analysis, I shared theses ideas for the previous week. It's not very humble, I know, but Bitcoin has followed the red line perfectly! After making a small pull back, it returned to test the POC at $49,000 and flipped it into support before closing the week above $51,000!
VPVR & POC
As you can see (from the last analysis), the POC has risen from $49,000 to $50,000, an important psychological level that was handled in an impressive way by the bulls last week. This is now an important support, and every dip above this level is a buy imo.
Fibonacci Levels
What a good news to start the week. Last daily candle closed above the next fib level (0.618) at $51,100. This is a very important point for further upside. The next fib (0.786) is at $57,100, my next potential target for this week.
I’m very happy with this daily close because I think (this need more confirmation in the coming days) Bitcoin is back in its previous range between $50,000 and $57,000.
Weekly Close
61,8%. In seven weeks, Bitcoin retraced more than 61,8% of its big sell off in May 2021. In other words, we are only 25% away from reaching a new ATH. Is this bearish? NO.
Fear & Greed Index
This is the “bad news” of this newsletter. Why is bad? Because as I told you many times before, you buy when people are fearful and sell when they are greedy. I'm not saying it's an exact science, but it's an indicator to keep in mind and take into account in order to be up to date on the overall market sentiment.
For the fist time since May 2021, we’re in Extreme Greed.
Weekly Plan
First scenario:
More upside from this weekly open toward $53,000 with consolidation below
Breakout and flip $53,000 into support
Bullish acceleration to next fib at $57,100
Second scenario:
Small dip to previous fib at $51,100 (potential more drop below the fib)
Bounce back to reclaim the weekly open and target $53,000
Note: Neither scenario 1 or 2 are bearish. Every dip above $50,000 is fir buying, if Bitcoin dump below $50,000 again and flip it as resistance, we’ll change our plans.
Overall,
Bitcoin printed an incredible week again and bulls are in full control. The overall market is evolving nicely and cleanly with many retests of support before reaching new levels. I'm still bullish on this week, but don't forget that we've gone into an extreme greed and that the past has already shown us what it can lead to.
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