We will be looking into bitcoin (BTCUSD) frequently here on AltcoinsPedia.
We can look at different timeframes and different charting systems always focusing either on the chart signals with the different potential outlooks, bearish or bullish, or the learning aspect of chart reading or a combination of both.
The intention is not about being right or wrong, but to use the charts to gain information to improve our decision making for trading, just to stay ahead of the game or to be informed.
This the weekly chart, each candle/session is worth 7 days (1 week):
We know the bearish trend (downtrend) is over because the current price action is happening outside of the descending trendline. This is a big blue line on the chart.
Bitcoin (BTCUSD) is no longer bound by this trend.
The purple lines mark a consolidation pattern. After a strong move there is always a consolidation phase, after the consolidation we have a breakout and this can happen up or down, in this case it went up…
We can see prices moving above EMA10, the green line on the chart, and also EMA21.
This weekly candle hit the $23,333 as peak price, the highest level in 5 months (since August 2022).
The trading volume last week was also the highest on a weekly basis since August 2021.
These are what we call bullish signals and favor the bullish perspective. Things can change, always, and they can change fast and right now they are changing from bearish to bullish… Regardless of what the news and sentiment is saying out there, the charts will give you the truth, what is happening, no need for guessing games.
If prices break below EMA10, bearish.
If prices break up but volume is lower rather than higher than previous weeks, potentially bearish.
If the downtrend line is still intact, bearish.
If new lows are being hit, bearish.
But if instead we see growth as is happening now, from $15,500 to $23,000+, that’s a bullish signal and we stay bullish for as long as the charts say so.
Let’s continue… Here is the weekly timeframe BTCUSD RSI:
- The major downtrend on the RSI that started January 2021 has been broken (purple line).
- The highest reading on the RSI since November 2013 happened this same month, January 2021.
- The weekly RSI All-Time High for BTCUSD happened in March 2013.
- The low hit in July 2022 on the RSI, marks the lowest level ever on the downside. The only time bitcoin has been this low on the RSI was December 2011 as it started to grow.
Last year we had the lowest reading in 11 years.
When bitcoin goes oversold, it is time to buy because it is always followed by growth based on a long-term perspective.
We expect bitcoin to continue growing in the days, weeks and months to come.
We expect long-term higher highs and higher lows.
It is still a bit early to reach such conclusions but if the chart changes we will have plenty of time to adapt and adjust.
- Short-term targets are set between $25,000 and $28,000.
- Mid-term targets are set between $38,000 and $40,000+.
- Long-term targets, in years, bitcoin can go beyond $250,000, $325,000 and beyond.
As for now, we are likely to see some shakeouts followed by additional growth; straight up.
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