Bitcoin: weekly market analysis (from 21 January to 27 January 2020 on USDT / BTC pair)
USDT / BTC the bulls start pushing again
We start our analysis as always from the 30D chart, here, as anticipated, the opening of the new candle of the month took place above the pivot point and the retracement of the past few days has generated a rebound (yesterday) just in correspondence with this level; this is certainly a positive sign and the feeling is that we could have an R3 test over the next thirty days, precisely at $ 11500 as I had anticipated in last week's analysis.
To be disturbing, however, is the cloud ichimoku which, and we had anticipated this too, show us how the price of BTC has now passed under the clouds, giving life to a signal that we should interpret as bearish; this instrument, however, is currently difficult to read correctly because the two moving averages could give rise to both a bullish and a bearish cross.
We can be sure of one thing, however, if this month's candle closes above $ 10500 we will find ourselves in a decidedly bullish scenario; let's move on to the weekly chart to look for some new ideas on the evolution that the trend may have from here on out.
Here we have at least two positive signs, the EMA20 which provided solid support after the retracement of the week ago and the MACD which has returned bullish (although it does not seem to have great momentum); also the parabolic SAR has been bullish for four weeks and this reinforces the thesis that we could have a maximum in the $ 11500 zone with a closing of the candle this month that could easily take place above $ 10500.
On the other hand, the 1D chart is difficult to read, with the MACD appearing to be able to return to the bullish position shortly (thanks to the bulls' push yesterday), but which unfortunately has also just closed a bearish divergence; but be careful of the parabolic SAR which is still bearish and seems to suggest that what happened on Sunday is actually a trivial retracement.
The other thing we note is that the EMA50 does not seem to be able to cut the EMA100 upwards, so we may immediately have a recovery in bearish pressure; this is what we currently read on the 1D chart, in a different way from what we have just said for the higher time frames
The graphs at this moment show us conflicting signals, while on the higher time frames we still find margins of optimism, the 1D graph does not arouse as much enthusiasm; my prediction is that the price of bitcoin, over the course of this week, will continue to retrace, probably right up to $ 7700 as I anticipated last Monday.
In any case what we have to do is keep an eye on the latest maximum ($ 9200) because if it were broken this would invalidate the bearish divergence that we identified on the MACD (on daily time frame) and return enough enthusiasm to push the price until testing the R3 on a monthly time frame.
However, this is not, in my opinion, the most likely scenario for bitcoin and, at least for this whole week, I expect bears to take over the bulls.
Please note: this post is not intended to provide in any way financial advice relating to how to invest your money but it is purely educational.