What Market Phase are we entering into has been the introductory question for our last appointments. Are we going to listen to the Bulls or the Bears? Are we going to see a Bull Market or a Bear Market?
Welcome to Surfing the Market, we are already at our 28th appointment and I hope that with these easy tech analysis we have helped you in some forms, even just to evaluate different market perspectives.
Third appointment after the Holidays, and Bitcoin price is consolidating.
Let’s start from our usual weekly perspective
Source: Tradingview - Weekly Chart
Price is consolidating in the 23k$ area. This is actually a good news, because before seeing further growth, price consolidation is important.
Then, so far, so good.
What do I expect from a daily perspective?
Source: Tradingview - Daily Chart
Last week the price was hanging around the blue resistance that turned into support for the following impulse that brought the price at the current level in 23k$ area. Price is compressing now so I expect in the coming days another movement.
I am saying in the coming days, because there have been a lot of volumes in the last weeks entering into the market so either they will stay in or they will go out trying to take some profit.
Source: Screenshot Dollar Strenght Index
Dollar Strength Index is still ranging in the 102 area like in last week snapshot. When DXY is stable, some calm is seen in these markets. Anyway, dollar is losing strength towards Euro and Yen, meaning that potentially, Bitcoin may face another bullish movement. Not necessarily just for its merit, but eventually for Dollar’s demerits.
50MA and 200MA are still below the price action. The 50MA (red) is raising, and the Golden Cross may happen in a couple of weeks if the bullish trend is confirmed. Golden Cross is usually a Bullish signal and the higher the Timeframe, the stronger the signal may be.
Source: Tradingview - Daily Chart
Ichimoku Clouds are gaining width, meaning that in the area of 21k$ there is a statistical strong support since the wider the Cloud, the stronger the price-level.
Source: Tradingview - Daily Chart
Stochastic is confirmed in the overbought area and locally this can lead to a move downwards but during a bullish movement oscillators stay in the overbought area for almost all the trend.
Source: Tradingview - Daily Chart
Stochastic confirms the bullish movement, staying in the overbought area (same as last week).
And now, what from a Volume perspective?
Source: Tradingview - Daily Chart
Volumes have significantly have increased also during the last week, meaning that this price consolidation is already absorbing some selling pressure. This is another potential signal that gives stability or eventually also some continuation.
What to observe particularly?
Source: Tradingview - Daily Chart
I have introduced here, on a 3D timeframe basis the yellow and the red line. The yellow line in the 24k$ area is my next target, that if it will be broken with volumes, may bring us to the following target, the Red one, that will be statistically far stronger than the yellow one.
They are both levels where the price had some resistance/support in the last months.
I am still quietly bullish, even if some temporary set-back of the price may be seen. I am thankful since I bought some fractions of BTC at 16500$ area.
We are also keeping up the development of our automatic indicator. Since the last week we gathered some more results and I can tell you that I am quite satisfied!
Anyway, keep your eyes open, since Thursday are going to be released the data about USA GDP. That news will be very likely to influence the market.
Let me know what you think about this new weekly appointment, and what indicators you would like to be taken into consideration more (or even explained).
Stay tuned and be sure to follow to get noticed when my contents come out.
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None of what I write can represent a financial advice in any form. So Do your own research before taking any kind of action.
