The weekly close is in and what a week it was for Bitcoin, moving more than $2,000 and closing just under $11,000. Let's take a look at the charts.
The weekly chart looks fantastic as Bitcoin ripped straight through the resistance from $9,600-10,400 and closed above. Having come this high, it seems unlikely that BTC goes without at least tapping the upper resistance and the 0.5 fib near $11,500 it's just a matter of whether there's a retrace of any significance prior to it. As long as the following week closes above the 0.382 fib and retains this support I'll remain firmly bullish. Price can even revisit the support down below $9,000 without much concern as long as there's a clear rejection from this area. I don't know how much of a retrace Bitcoin offers, but I'm a buyer everywhere in the mid-$8000's through to $10,000 in anticipation of that next leg up. Longer term if this bull market does continue I expect price wicks off the 21 EMA at some point and if it does, will offer an amazing buying opportunity. Right now it's sitting right at the 0.236 fib near $7,000 but I think it comes a fair bit higher before we get that deep of a retrace and could see it lining up nicely around that $8,000-8,500 support.
Support: $8750, $9,600-10,400
Bitcoin really took off when $9,500 broke and it's been almost straight vertical ever since. Although that's exciting for anyone with Bitcoin, it also means it didn't leave a ton of support on the way up with the last real level it consolidated sitting around $9,000-9,400. There's long upper wicks on the last two closes suggesting that selling pressure is starting to show up as well. Game plan is pretty simple right now - spread bids from the monthly open at $8,550 through to the upper end of support at $9,500 and try to catch a Bitcoin dip. If price generally holds above $10,000 I'll look to add longs on a daily close above this weekly open.
Support: $8,550-8,750, $9,000-9400
Bitcoin on lower timeframes
Price action on the 4-hour looks quite similar to what occurred in the low-$9,000's and if anything can be learned from that, it's to wait for a close outside the range. Close above $11,000 - long; close below $10,500 - short. In the latter scenario I'd target the daily support around $9,400 though it's worth noting there is a cluster of support from $9,600-9,900 which if there's a strong bounce it would be a clear signal to flip long.
Support: $9,900, $10,500
Resistance: $11,000, $11,500
That's it for this week - if you want more regular content, be sure to follow me on Twitter. Decide to trade Bitcoin based on my charts above? Do me a favor and register at Bitmex, Binance (margin trading coming soon!) or Bybit which is currently offering up to $60 bonus for new sign-ups.
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