Bitcoin course with self-crowning or bloody streets?
Bitcoin and Gold: Again and again the two assets are compared. Gold is older, Bitcoin is better. In the picture are gold bars and BTC Coins.
After the Bitcoin price on some stock exchanges minimally broke the all time high of 2017, a sell-off of $1,800 followed. Many assumed that the Bitcoin price would simply continue to march high and overcome the old all time high at breakneck Bitcoin System review speed without much effort. This was not the case. Since then the price has been fluctuating in a range of about $900. Is this bullish or is the Bitcoin price showing weakness?
Bitcoin price in the week again very expensive
In order to get an overall view, we will first look at the price on the weekly chart, then on the daily chart and finally on the 4-hour chart. Larger time units are always more relevant than lower ones.
As we analysed in our last report, the old all time high from 2017 in conjunction with the underlying resistance zone was a hurdle for the Bitcoin price. This was not easily overcome. However, a bullish structure still exists on the weekly chart. The Relative Strengh Index (RSI) is now in expensive territory for the third week. This indicator shows whether a market is currently expensive or cheap. The likelihood of a major consolidation therefore continues to increase.
In order to remain in a weekly bullish structure, prices of up to $11,500 to $14,000 are even possible in a correction. It remains to be seen whether this will happen through a price correction or a sideways phase lasting for days or weeks. But let’s take a look at the daily chart. There we might be able to spot a trend. Which direction will it take?
If you look at the Bitcoin price on a daily basis, you can see that the RSI is slowly returning to normal. The trading volume has also been steadily decreasing for several days. Both indicators suggest that not much is currently being traded. This suggests that many market participants are looking for new positions and waiting for an initial move.
A breakout from the sideways phase should always be made with high volume. This signals that many market participants have decided on one direction. Higher prices can be expected if the breakout zone is confirmed.