Bitcoin has a taste for it again this weekend; since its low point last Friday, the value of the world’s first crypto currency has risen by more than 3%. What more can we expect from bitcoin? We’ll be plunging into the charts soon!
Bitcoin on its way to breaking resistance in the short term
We start with the hourly chart of bitcoin. At the moment the price is on its way to the resistance of 10,800 dollars (9,204 euros), that’s the orange bar you see below. The bitcoin price is in a rising channel, the price is moving between two rising trend lines. Is this channel holding up? Then it may well be that bitcoin will soon break with the orange bar.
Bitcoin may break out at the end of October
We zoom out a bit on the graph, you are now looking at the daily price of bitcoin. As you read in our previous analyses, history can repeat itself. Earlier, bitcoin broke out of the black triangle, the exchange rate was even just above USD 12,000 (EUR 10,222). Is bitcoin also breaking out of the blue triangle now? Then the rate target becomes 13,700 dollars (11,671 euros), the green arrow on the chart below.
Bitcoin enters the new year with a bang
Below you look at the week graph of bitcoin. Another analyst expects that bitcoin will not be able to make a big move until the end of this year. Analyst Wolf shares on Twitter that bitcoin is currently moving the 21-week moving average. This refers to the moving average of the past 21 weeks. On the graph below, the blue wavy line is the 21-week moving average.
According to Wolf, there is now re-accumulation. Investors continue to buy bitcoin while the price moves sideways. At the end of the re-accumulation period the price flies up. This has happened twice before in the history of bitcoin, that moment we indicate with the black arrows on the graph above.
It is not clear how long the re-accumulation period will last this time. But if it lasts about as long as the previous two times, bitcoin could finally break out at the end of this year. On the graph below we have zoomed in a bit, so you can see it better.
Our expectation of bitcoin for the coming days
Anyway, that is for the longer term. What can we expect from bitcoin in the next few days? We describe two scenarios: bullish (positive) and bearish (negative). You look at the four hour chart of bitcoin below.
Bitcoin has found its way up again. We see the first resistance at USD 10,942 (EUR 9,320), the thin green line on the chart. If bitcoin manages to rise further, 11,200 dollars (9,538 euros) is the next resistance.
In the latter case the exchange rate has also broken out of the triangle, and in the longer term the price can go up to USD 13,700 (11,671 euros). But for the coming days this is probably too high.
But what if the course falls? Then bitcoin will probably first find support at $10,400 (€8,858), the orange line on the chart. This also coincides with the bottom of the triangle.
If the rate continues to fall, $10,000 (€8,517) can still serve as a safety net. For many investors, this is a strong psychological boundary.