The Bitcoin price rose slightly in the last week (August 16-22, 2021). This week the weekly closing price was higher than the opening price for the fifth time.
Bitcoin price is approaching the crucial resistance level at USD 50,200. Should the Bitcoin price break above it, then we could see a strong upward movement.
Bitcoin price weekly chart analysis
Despite the price increase in recent weeks, there are also some bearish indications on the weekly chart. Bitcoin price has fallen below the descending support line shown below and could soon validate this as resistance. There was also a bearish crossover of the signal lines on the Stochastic Oscillator. Since the drop on May 19, 2021, the supertrend indicator (the red line) has also signaled that the trend is bearish.
The trading volume has become smaller and smaller in the last few weeks. This suggests that we will not see a trend reversal just yet. In the event of a trend reversal, the trading volume would be much larger. However, the MACD, which is slightly above the 0 line, is giving us a bullish reversal signal. Also, the RSI has risen above the 50 line. The weekly chart therefore tends to look bearish, even if there are some bullish developments.
Will the BTC rate break out?
On the daily chart you can see that the Bitcoin price is just near the crucial resistance level at USD 51,200. There is both the 0.618 fib retracement level and a horizontal resistance area.
As on the weekly chart, the technical indicators provide us with some indications that the upward movement has lost some of its momentum despite the current price increase. Bearish divergences have developed on both the RSI and the MACD. Also, we could soon see a bearish crossover of the Stochastic Oscillator’s signal lines. The trading volume is also extremely low. Therefore, there could be a significant price movement soon.
On the 6-hour chart you can see that the BTC price may be trading within an ascending, parallel channel. The Bitcoin price last reached the resistance line on July 30, 2021. On August 9, 2021, however, the Bitcoin price almost rose to a high point, which is slightly below the resistance line. However, two bearish divergences have also developed since then.
The two bearish divergences and the fact that the BTC price could not reach the upper line of the channel again are a sign that the upward movement has lost momentum. Since the Bitcoin price is currently near a decisive resistance area, there will probably be no significant breakout above the channel or level for the time being.
How low can the Bitcoin price fall?
The next two major support levels are around $ 42,300 (the 0.382 fib retracement level) and $ 38,000. There is a horizontal support area at both levels. The value of the 0.382 fib retracement level depends on where the next top will be.
Translated by Maximilian M.
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