BTC Using Key Support
Hello everyone, today we are going to be looking at this Weekly chart on Bitcoin.
The first thing I want to show is the 8 Week Moving Average. Last bull cycle, BTC mainly used the 21 Week EMA for its retracements, but so far in this current bull market, BTC has really liked to bounce off of the 8 MA, as it would sometimes do in the previous bull cycle.
Another thing I want to bring to our attention, is that BTC has made a technical double bottom in price. On the March 22nd Weekly Candle, price wicked down to $50,350. With our current weekly candle, we have wicked down to $50,500.
Currently, at the time of writing this post, BTC has made this double bottom with its wick, AND, its body is currently showing a close on top of the 8 MA.
Now for the RSI. I've made a trend line which was used as resistance for the 2017 Market Top, as well as the July 2019 Fake out. In late October of 2020, we closed above this RSI line for the first time, and went up from 112K to this 60k range. On February 22nd, price dropped down to 43k with the RSI using its trend line as support at 67.98. The awesome news is that, if this weekly candle closes (in 8 hours) around our current price level, our body would have closed near 55k, which is higher than the $43,500 close. This would allow us to have bullish divergence, assuming the RSI stays where it is at, and the close of this candle stays around the same area.
This also lines up perfectly with my price support and resistance lines. I think if we can have a nice close in this area, the following weeks may see us close above the
65K range, and potentially bounce off of it as major support. When this eventually happens, I would expect BTC to go parabolic like it did during the last 5-7 weeks of the 2017 bull market cycle.
If you enjoyed this idea, feel free to give a like and subscribe. As always, this is not investment advice and do your own due diligence. Have an awesome day everyone!
The first thing I want to show is the 8 Week Moving Average. Last bull cycle, BTC mainly used the 21 Week EMA for its retracements, but so far in this current bull market, BTC has really liked to bounce off of the 8 MA, as it would sometimes do in the previous bull cycle.
Another thing I want to bring to our attention, is that BTC has made a technical double bottom in price. On the March 22nd Weekly Candle, price wicked down to $50,350. With our current weekly candle, we have wicked down to $50,500.
Currently, at the time of writing this post, BTC has made this double bottom with its wick, AND, its body is currently showing a close on top of the 8 MA.
Now for the RSI. I've made a trend line which was used as resistance for the 2017 Market Top, as well as the July 2019 Fake out. In late October of 2020, we closed above this RSI line for the first time, and went up from 112K to this 60k range. On February 22nd, price dropped down to 43k with the RSI using its trend line as support at 67.98. The awesome news is that, if this weekly candle closes (in 8 hours) around our current price level, our body would have closed near 55k, which is higher than the $43,500 close. This would allow us to have bullish divergence, assuming the RSI stays where it is at, and the close of this candle stays around the same area.
This also lines up perfectly with my price support and resistance lines. I think if we can have a nice close in this area, the following weeks may see us close above the
65K range, and potentially bounce off of it as major support. When this eventually happens, I would expect BTC to go parabolic like it did during the last 5-7 weeks of the 2017 bull market cycle.If you enjoyed this idea, feel free to give a like and subscribe. As always, this is not investment advice and do your own due diligence. Have an awesome day everyone!
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