Bitcoin Technical Analysis Update - Week 47
Bitcoin is back to its downtrend channel (LTF), strong support area at $57,000, what can we expect for this week?
Registrations are open! As you know, Gaurav and I opened a Paid Discord Group for only $23 per month (or $69 per quarter). We provide future and spot trading call but also portfolio management to rotate your money in the best possible way!
JOIN US NOW:
We’re very sorry for the past two weeks where we could not publish our weekly analysis due to lack of time.
Summary
XABCD Pattern
Downtrend Channel
Weekly Close
Bitcoin Dominance (BTC.D)
Fear & Greed Index
Weekly Plan
6.1 First scenario
6.2 Second scenarioOverall
1. XABCD Pattern
I shared this potential “bat” pattern few days ago on Twitter for Bitcoin and, in fact, we had a bounce from the $55,000/$57,000 area. The current major resistance is $60,000, a key level to flip as support to expect further upside.
2. Downtrend Channel
Since the first candle above $66,000, Bitcoin is moving in a downtrend channel. Two weeks ago, bulls broke out this channel to reach a new ATH at $69,000, but bears was still around and dump back the price in this previous channel to $55,000!
While I’m writing this analysis, the current support is the middle of this channel (around $56,900 here).
3. Weekly Close
When you zoom out, this weekly close is not bad at all BUT still in a key support area (short-term). If the $56,500/$57,500 area hold as support, we should see some consolidation before a new leg up toward a potential new ATH.
Btw, this consolidation above this level could help atlcoins to move up because BTC.D could print a new leg down before a bounce from its current support area (short-term).
4. Bitcoin Dominance (BTC.D)
As I said above, I expect some more side way for Bitcoin’s Dominance before a new real bounce. Currently at support area, I would like to see a new local low at the support area bottom (around 42%) before a real bounce that would send Bitcoin on a new ATH towards $70,000.
5. Fear & Green Index
The Fear and Greed Index is at 50%. Absolutely "Neutral" here at $57,000 and, in my opinion, this is very healthy as the market recovers and heals after another ATH.
6. Weekly Plan
6.1. First scenario:
Bitcoin holds well its mid-channel support and bounce
New breakout attempt at channel resistance + key level at $60,000
Moving upward toward the local resistance at $62,000
6.2. Second scenario:
Bitcoin lose its mid-channel support
Then, goes back to downtrend channel bottom around $53,000
Print a local double bottom with bullish divergence (?) before a strong bounce back to its downtrend channel resistance
7. Overall,
a correction after a new ATH is absolutely normal for an healthy chart. If you zoom out on the current Bitcoin chart, you can see how high we are even at $57,000 and how the bullish market structure (HTF) is still in play.
However, on the short term, this area needs to hold to avoid further downside in the low 50’.
If you like it, don’t forget to subscribe, share and follow theses account on Twitter: @AnthoXBT & @ApeBaguette