By John van Meer (The Bitcoin Consultant) – The bitcoin bull is loose and broke resistance after resistance this week. Can the price steam above $16,000 in the coming days?
Bitcoin weekly chart
On the weekly chart (figure 1) the price is very bullish and we see a candlestick of almost $3000 this week! The bulls are definitely present.
In the bullish scenario, the next resistance at $16,124 is eliminated. Then we can look at a smaller resistance at $17,234 before we get just below the all time high. For the bullish scenario, a pattern must break out upwards on the lower timeframes. More about that below.
The technical target for the inverse head and shoulders that has broken out is about $20,720.
Although the title is „bearish scenario“ it is difficult to be bearish. With bearish I am talking more about a healthy pullback. The price has only gone up since $10,000 without any significant correction. It always comes.
The question is when and how far. If $16,124 remains the resistance then I’m at least looking at support at the $13,880 that merges with the 0,382 fibonacci and the golden pocket region around $12,000 – $12,500. This is pretty far away, but in previous bull runs we have seen short, solid declines of 20 – 40%, so that is possible.
The volume is good and above average, making it a valid outbreak. The RSI is well overbought, but can stay that way for a while before there is a pullback to reset it.
Bitcoin course day graph
On the daily chart (figure 2) a red doji candlestick was produced yesterday. This indicates that there is a battle between the bulls and bears under the resistance of $16,000.
In order to remain bullish and soon continue above $16,000, bulls need to keep the support of the 12EMA and the .382 fibonacci, between $14150 and $14,500. If that breaks support it is likely that the $13,880 will be tested. Then it could take a bit longer before the $16,000 is broken.
The RSI is overbought and is normally indicative of a correction. But in FOMO times like now the RSI is less reliable.
Bitcoin price 4-hour chart
On the 4-hour chart (figure 3) the course is clearly in a consolidation phase. The volume decreases and the price moves within a triangle. If it breaks out upwards there is a target of $16,358. At this moment the bulls are still in control and remain above the 12EMA.
It can also break out downwards and I am looking at targets at $15,000/ .382 Fibonacci. It could then possibly also form a bull flag according to the white dotted line.
Last weekends we also saw mainly sideways movement. Whether or not this weekend will remain so is difficult to say with the bullish momentum.
What will bitcoin do?
The bulls are loose, that’s obvious! On the low timeframes, a symmetrical triangle or bull flag can get the price above the resistance of $16,000 towards $16,350. If that doesn’t work, a further pullback is needed, but also healthy. Targets are then at $14,500 and $13,880.
250th video analysis!
Every day there are also video analyses made about the price development. Last Friday the 250th was made and this was celebrated with prices and discount on the day trading course. Watch yesterday’s video for more information on the discount code!
John from More
The Bitcoin Consultant, John van Meer, has been teaching the general public about cryptocurrency for years through webinars and seminars and online courses. The latest is the online trade course that teaches you how to read charts and use tools to trade!