Bitcoin [BTC] Price Forecast- Another Bullish week in store?
Bitcoin price is currently trading in a range this Monday after pricing in a Bullish week. Last week saw the price of Bitcoin appreciate from around 6600 to a high of approximately 7450, a roughly 11% gain. Last week also saw altcoins making large appreciations after steep declines for all of this year.
One of the most bearish cases which are based on the descending triangle pattern which has been forming since January of this year. With this pattern, we would expect strong resistance around $7400-$7500. This would be expected to be followed by a sharp decline back to the $6k levels and a drop below. However, it is questionable whether the descending triangle pattern will materialize in bearish price action as many signs are giving a longer-term bullish signal. Price and RSI have been forming higher highs and higher lows which is the sign of an uptrend. MACD has also been diverging to the upside showing that the momentum is with the buyers.
The hourly chart provides a closer look at the recent price action we have been seeing. A bearish divergence preceded a price drop back to around $7200 yesterday. While the price was forming higher highs, the RSI formed a lower high showing less buying pressure.
We have since been trading in a range around $7200 to $7300. The 50EMA is acting as support, and around $7150 would be expected to act as further support. We may see another price drop in the near term, but a move to the upside is also possible. The current outlook is short-term neutral and long-term neutral. A move to the upside with a close above $7500 will change the outlook to bullish.
- Bearish divergence on Sunday preceded price drop.
- The current outlook is neutral.
- Bullish week priced in for both Bitcoin and Altcoins last week.
- Currently, there are both bullish and bearish signs.
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