I am being asked a lot where Bitcoin will go next.
I don't know where Bitcoin will go next, but I can tell you what the charts are saying. But also please keep in mind that the charts are always changing, I can tell you what the signals are now, but the charts will always be evolving. With that said, let me give you a few hints.
Bitcoin has been trading on a descending channel for quite a while now. We called this a correction, market wide correction and now a bear market or what not. This doesn't really matter, these are just names.
The fact is that Bitcoin is going down.
We reached the lowest point we have reached since this decline in price started and quickly bounced from that level, that's the now famous $6,000 level we talked about yesterday (6th February 2018).
After bouncing from this level, we are now looking up short term. Now this is the tricky part, this is short term.
It you look at the chart (below), you can see that throughout this entire decline we've been having lower highs and lower lows. This small increase in price can be just that once more. This is too early to tell but, there are some positive signals.
1D chart:
Yesterday's volume was really good. You can see it by looking at the volume bar on yesterday's candle, it is the second candle from right to left on the chart above. This signals strength from the buyers. This is good for moving up.
The candles are also good for more positive action, but we still need to see how the day closes, since these are 24 hours candles, the day needs to close to know if this will be a good positive candle or not.
The RSI bounced from a very low point, a low point that it hasn't seen in years, and there isn't plenty of room to go down anymore. This is another good sign.
The MACD is still on the bearish zone, it is only starting to curve but there is obviously plenty of room available for growth if it starts to trend up.
These are just some examples, but you can see how we are still on this decline, we have early signals of a bottom being reached and moving up, but we need to wait for the charts to develop, to get BETTER AND STRONGER SIGNALS, before we can say for sure that Bitcoin will go up. But on the short term is obvious, we are going up.
So we can even go up for a few days and then return back down, or we can start to move up strong and start a new uptrend, a new trend even if it is sideways but at higher levels. The thing is that more time is needed, since it was only yesterday that the mood changed.
On the other hand, we are looking really, really good on the short term. The 1h, 2h and 4h charts are giving us strong bullish signals, we will need more momentum, some barriers we need to break.
Let's see how the price closes today. Let's see how far up we can go again.
Depending on the results, I can come back here for more.
I want to thank you again for reading.
I want to tell you that I love you all.
Namaste.
UPVOTE & RESTEEM if you enjoy
Thank you for your analysis!
you are welcome. I hope you enjoy.
Good article. I am still learning crypto, my wife is the brains of the operation, but this seems to be a well considered standpoint. We shall continue to hold. Actually hoping for a bit of sideways chart action in BTC to help our ALTs along.
hold is good strategy