Technical analysis - can the Bitcoin price soar past $ 14,000?
In the past few weeks, we have seen continued volatile price action from Bitcoin and other cryptocurrencies. With the outlook changing by the minute, we want to provide you with an updated look at Bitcoin. To give you the best information possible, we will take a look at the prospects for Bitcoin in the coming days, weeks and months. This analysis will include technical indicators such as moving averages, RSI levels, volume, and bollinger bands.
Our analysis will contain perspectives from the short-term to evaluate the coming hours to the long-term to evaluate the coming weeks and months.
For a short-term analysis on Bitcoin, we hope to provide you with analysis that will provide you insight as to what will happen in the coming hours and days with Bitcoin. This analysis shouldn’t be used as evidence for the long-term, but it could certainly help you find a good entrypoint if you’re looking to enter a trade either long or short on Bitcoin.
For the short-term view, we are going to look at a chart with 1-hour candles.
As you can see on the short-term chart, Bitcoin has been in an upward climb for a few days now, hitting the high of $14k a couple of times. This consistent climb comes after a drastic increase a few days ago. This pattern is very encouraging. With our trendlines, we can see a potential bull flag forming on this time frame. This view is fairly bullish for the coming hours and days.
For those looking for a medium-term view of Bitcoin’s price action, we are going to take a look at a chart that uses 4-hour candles. This analysis should give you an idea of what is to come in the coming days and weeks.
On the medium-term chart, we can see that we are actually nearing a potential resistance. We don’t consider this to be an insurmountable task for Bitcoin, but we could see a short-term consolidation. There are other signs that Bitcoin is headed for future consolidation, such as rising RSI levels. However, the bull flag pattern holds up in this view, so there’s no reason to be pessimistic about BTC on this chart. We would call this view neutral at this point.
Most people want to know what is going on with Bitcoin from a long-term perspective. For that view, we will be using a chart with 1-day candles. This chart will give traders an idea of what will happen with Bitcoin in the coming weeks and months.
On the long-term view, we see some very bullish patterns holding up for Bitcoin. BTC over the past few months did indeed go through a consolidation period in which the price dipped as low as $4k. Since then, it has strongly rebounded. We are currently at the previous high of $14k. If BTC is rejected at this price level, we could see a temporary consolidation, which would lend credence to a cup and handle pattern, which is incredibly bullish.