Bitcoin price correction complete?
Bitcoin (BTC) is the strongest and most secure network in the world. Because of its encryption and decentralisation, Bitcoin cannot be hacked. The picture shows a safe lock with a Bitcoin in the middle.
Where is the Bitcoin price heading? Will it continue to fluctuate in the Bitcoin System range between 44,850 dollars and just under 57,500 dollars? Will it fall lower or rise to a new all-time high? To answer this, in this technical analysis we look again at the price on a weekly, daily and 4-hourly basis.
Bullish bitcoin price in the week
What makes a bullish trend and how do you recognise it? It’s higher lows and higher highs. This is exactly what the Bitcoin price is currently showing in the weekly view. Since the Corona low, it has gone steeply uphill. With corrections and consolidations, but always in a bullish trend.
The key levels in the respective time frames can be identified as support zones. In the case of the Bitcoin price, the next support zone is between the two key levels of 32,288 dollars and 38,171 dollars per candle close. The reason for this is that this is where the capital lies. We had already discussed this zone in one of our last reports.
The more a price range is traded, the more support is found there. Orders were processed in the wicks. In smaller time frames, a little capital can still lie there. For large movements, however, this small amount of capital would be little or no obstacle.
The Bitcoin price is currently rather neutral in the daily view. There is no clear trend. The last low was not undercut. The Bitcoin price has also not yet been able to overcome the previous high.
A resistance zone has formed above the price. This extends from the daily key level at 50,360 dollars to the key level at 51,601 dollars. For a bullish continuation, the bitcoin price must overcome this zone via the daily candlestick.
A bearish scenario would undercut the last low. Accordingly, the zone between the weekly key level at 38,171 dollars and the daily key level at 40,665 dollars could be considered as support
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No clean structure in the 4-hour chart.
However, the deeper timeframe does not offer good entries at the moment either. Marked by range fluctuations, the Bitcoin price in the 4-hour chart does not allow for trend setups. And that is exactly what we want: a trend.
A trend increases the probability of the direction in which the price will continue to move. Accordingly, one adjusts one’s position. However, since this is currently not the case in the 4-hour and daily charts, we will remain on the sidelines with the Bitcoin price for the time being.