Bitcoin was really bullish a few days ago, but it seems to turn bearish for some analysts. Not for me though, and below is the answer to why I think they might be wrong.
BTC/USD Short-Term Chart Analysis Update
- Support: $3950, $3914, $3840, $3676, $3557
- Resistance: $4185, $4041, $4010
- Current Price at the moment of writing this article on CoinGecko: 3976$
My TA is based on higher time frames, slowly going on lower time frames in order to make a prediction.
Chart By Tradingview
If we have a look at the weekly chart, we can see that the RSI indicator is on the rise for quite a while now, while the candles are above the 9 EMA, slowly trying to cross the 20 EMA. Another bullish sign on the weekly are the shooting stars that seem to have taken shape.
Chart By Tradingview
Moving on to the 1-day timeframe, we can see that the chart is still looking good. BTC came down a little from near the overbought area but is still above the 9 EMA and we can see multiple bullish shooting stars as well.
Chart By Tradingview
On the 4-hour chart we can see that it had a couple of re-tests on the $4010 Resistance, eventually broke it and came back down when it touched the overbought area (*fake-breakout).
It’s below the 9 and 20 EMAs, currently finding Support on the 50 EMA. If it goes to test $3950 again it will probably not hold and we might see a flash dip to the $3914-3890 support (I tend to believe it will not break the $3950 Support because it’s pretty strong at the moment). Furthermore, it seems to consolidate in the expected area and we may see a break of the $4010 Resistance and finally test the much expected $4185.
If it goes below the $3914-3890 support I’d say it will most certainly go for the $3840 support in this case, and from there we will have to see what the next move is. Going below the $3840 support would mean we are still in a bear market and this cycle will continue for a while, most likely. (I do believe that the bottom has been reached and we should see BTC above the 4000$ price.)
Currently, I am still bullish on BTC and looking towards the $4185 Resistance to be tested.
Please, keep in mind that this is not financial advice, it is just me sharing my opinion. I am not a financial advisor. Always make sure to do your own due diligence before investing.
