In the last article we discussed the probability of Bitcoin breaking the 20 weekly moving average and talked about the consequences this event would have for the next days, weeks and even months.
At this moment in time, the price of Bitcoin stands at 9040$ and managed to perfectly dip into the 20 week moving average at about 8420$, which turned out to be providing massive support.
As a result of this bullish conformation, bitcoin pumped a approx. 500$ candle on March 2, that indicates more upside potential.
Where are we now?
Looking at the bigger picture, we recognize… nothing really changed.
The price of Bitcoin is still trapped between the resistance, that connects the All-time-high with the top of the last run up (which found his top at approx. 13.800 USD) and the recent top we were forming on February 14th.) and the support-line, bitcoin formed in early 2019, by testing it several times. This support-line was also tested in December 2019, when Bitcoin formed its local bottom.
Where are we going?
By proving, that the 20 weekly ma provides support for the price of Bitcoin, the market showed strength. In my last article I was talking about Bitcoin replicating the last bull-market, by breaking the 20 week ma to the upside, breaking it to the downside and finally breaking it to the upside.
But in order to perfectly replicate the last bull market beginnings, the price of Bitcoin had to retest the 20 week ma and hold it as support, which… he did!
Now Moon?
Not yet.
Like I pointed out before, we still have upcoming resistance at about 10.200$, which is my short-term target for the price of Bitcoin in the next days and weeks.
Meeting the upcoming resistance, there are two options
- Bitcoin is shooting right through the resistance
- Bitcoin is being rejected by the resistance
If the first scenario plays out, there will probably be massive bullish price action, because breaking a long term resistance typically is a sign of a trend reversal.
After breaking the resistance, I would love to see the resistance being tested as support, to confirm the breakout.
If the second scenario plays out, Bitcoin will likely back test the 20 weekly moving average.
Second support?
Because of the bounce we got from the 20 week ma, a new short term support-line has formed, which connects the local bottom Bitcoin formed December 2019 with the (hopefully) local bottom we are forming right now.
In my next article I am going to talk about, if this new support-line was confirmed, or if it was irrelevant.
Feel free to discuss with me in the comment section.
This is not financial advice!
Always do your own research!
