Bitcoin has been trading above $4,000 all through last week’s trading sessions. The market continued on moving through the new rising channel we spotted during last week’s bitcoin price analysis. A week high of $4,146 was recorded on Thursday, before a downwards price correction attempt became evident pulling bitcoin price down to record a week low of $4,044. The bullish momentum is steadily growing and will most probably continue on building up during the upcoming week, as we will see via our technical analysis.
Bitcoin price and the news:
Most major altcoins recorded positive gains throughout last week’s trading sessions ranging between 0.5% and 7%. Ethereum (ETH) price surged by around 1.5%, while NEO recorded gains of approximately 2.6%. Both Bitcoin Cash (BCH) and Ripple (XRP) rose by around 1.2%. Okex was the biggest gainer during last week’s trading sessions, scoring a price surge of around 6.6%.
Last Wednesday, Ron Karpovich, JP Morgan’s Head of ecommerce Solutions, stated in an interview that the banking giant is planning to make payments cheaper and faster, via utilization of the blockchain technology. He also reported that the launch of JPM Coin, which had been announced in February, represents the initial step along JP Morgan’s roadmap to implement the blockchain technology in the bank’s financial services.
Last week, the first ever Bitcoin ATM in a Middle East based country has been installed in Dubai. Amhora’s CEO announced on Twitter last Tuesday that the company has installed a Bitcoin ATM in Marina, Dubai.
SMA bullish crossover on the 4 hour BTCUSD chart:
Let’s study the 4 hour BTCUSD chart from Bitfinex, while plotting the 20, 50, and 100 period SMAs. We will also keep the FIbonacci retracements we plotted during a previous bitcoin price analysis, as shown on the below chart. We can note the following:
– The week started by a downwards price correction attempt that pulled bitcoin price down from an opening price of $4,120 to $4,034 on Monday. Thereafter, bitcoin price rose steadily, moving across the rising channel which has been evident since March 5th. The bullish momentum pushed bitcoin price up to score a week high of $4,146 on Thursday.
– After the week high was recorded, another downwards price correction attempt started pulling bitcoin price down to record a week low of $4,004 late on Thursday. As shown on the above chart, the downwards price correction movement was halted as price touched the lower trend line of the rising channel. In other words, the lower trend line of the rising channel is currently acting as a support level that is preventing further price drop, as evidenced by the long downwards shadows of candlesticks as shown on the above chart. Thus, bitcoin price bounced off the rising channel’s lower trend line and rose up to $4,050 within less than 8 hours following recording of the week low.
– The 20 period SMA, 50 period SMA, and 100 period SMA are exhibiting a “bullish crossover”, as the 20 SMA is above the 50 SMA and both are on top of the 100 SMA. This alignment reflects the current bullish trend of the market and indicates that bitcoin price will most probably continue on rising during the upcoming week. The next price target on the upside lies around $4,198.7 which corresponds to the 38.2% Fibonacci retracement.
Williams Alligator’s mouth is “open and ready to eat” on the 1 day BTCUSD chart:
Now, let’s examine the 1 day BTCUSD chart from Bitfinex, while plotting the Ichimoku Cloud and Williams Alligator’s SMAs. We will also keep our Fibonacci retracements as shown on the below chart. We can note the following:
– Bitcoin price has been moving along the new rising channel since March 5th, with its upper trend line acting as resistance (prevented further rise on March 8th) and its lower trend line acting as support (prevented further drop on March 21st).
– The Ichimoku Cloud is green in color and expanding, which reflects the market’s bullish trend which is likely to continue on building up during the upcoming 2-3 weeks. Also, candlesticks are above the level of the Base Line (red), and the Conversion Line (blue) has crossed above the Base Line, which are another 2 essential bullish signals confirming that bitcoin price is likely to head towards the resistance around 38.2% Fibonacci retracement ($4,198.7) during the upcoming 1-2 weeks.
– Williams Alligator’s SMAs are exhibiting a bullish alignment. Thus, the alligator’s mouth is “open and ready to eat”, i.e. bitcoin price will most probably continue on rising during the upcoming week.
Bitcoin price stabilized above the $4,000 price mark throughout last week’s trading sessions. Our technical analysis predicts that bitcoin price will most probably continue on rising steadily during the upcoming week, so we can see the resistance around $4,198.7 tested.No tags for this post.