Bitcoin Weekly Price Forecast: BTC/USD Eyes Testing Monthly Resistance
Bitcoin Price Technical Forecast
BTC/USD – Bulls Comeback
On Jan 6 Bitcoin started uptrend move creating higher highs with higher lows. On Jan 22, the market corrected its move and created a lower high at $8.789. This led the market to close the weekly candlestick with nearly 5% loss. Yesterday, the price resumed bullish price action and printed $9.405- its highest level in over two and half months.
This week, the Relative Strength Index (RSI) rose from 57 to 69 emphasizing bulls’ comeback.
Bitcoin PRICE DAILY CHART (OCt 2, 2018 – Jan 29, 2020) Zoomed Out
Bitcoin PRICE DAILY CHART (Sep 13 – Jan 29, 2020) Zoomed In
Looking at the daily chart, we noticed on Jan 14 the price broke above the downtrend line originated from the Sep 6 high at $10.940 generating a bullish signal. Yesterday, the market rallied to a higher trading zone $9.080- $10.959 providing another bullish signal.
Based on these two signals, bulls could lead Bitcoin to the high end of the zone contingent on clearing the weekly resistance levels printed on the chart (zoomed in). Further close above this level may convince more bulls to join the market and push towards 13.853. That said, the weekly resistance levels underlined on the chart should be considered.
In turn, any close below the low end of the zone could reverse the market’s direction towards the low end of the zone. Yet, the daily and weekly support levels underscored on the chart would be worth monitoring.
Bitcoin PRICE FOUR Hour CHART (Sep 13 – Jan 29, 2020)
Looking at the four-hour chart, we notice this week, XBT/USD resumed bullish price action as broke above the Jan 19 high at $9.180.
A break above $9.660 could send the price towards $9.926. Although, the resistance level underlined on the chart should be watched closely. On the other hand, a break below $8.998 may press Bitcoin price towards $8.671. Nevertheless, the daily support level marked on the chart should be kept in focus.
See the chart to know more about the critical levels in a further bearish/ bullish move.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.