BTC is about to close one of its best weeks of the year, after jumping from $ 11,500 to $ 13,217 in a matter of 3 days. Today Bitcoin went a bit further, hitting a new yearly high of $ 13,350, but it seems like there wasn’t much force to continue, and today we see the price pulling back.
This situation makes us wonder if the bullish momentum will spread quickly, or on the contrary the market needs to breathe before continuing to set new highs. To find out, we carry out the analysis that you find below.
Bitcoin price technical analysis
In the weekly time frame we observe an excellent candle about to close, capable of reaching the target of $ 13,147 forecast here in CryptoTrend. Immediately reaching the zone, the offer stopped the price, but the upward force is already resumed.
What we see from this graph is a developing momentum, a product of the medium-term uptrend, and although it may have already ended, there is still no definitive signal to confirm it.
In this vein, we may still see a new yearly high soon before a corrective process begins. Will $ 14,000 be the next goal? It is quite likely.
Before we give this scenario much thought, let’s take a look at the daily chart to see where most of the odds lie.
Bitcoin seems determined to pull back a bit before seeking a new yearly high
From the daily candle chart we observe how since Bitcoin reached the new annual high today, the bears exerted downward pressure, and it seems that the pullback has begun.
In the short term the trend is clearly bullish, followed by the moving averages 8 EMA and 18 day SMA crossed to the upside. However, after pursuing that peak at $ 13,350, it is already quite healthy even if it is a small pullback.
If we mark a Fibonacci from the point of the start of the momentum, to the bearish candle that is developing, a valid retracement would go through the low search of $ 12,550. Lower down the 61.8% level can also be a good place to collect demand, which means a search for $ 12,000.
After this expected setback, Bitcoin will seek a new annual maximum, where the 2019 highs zone, close to $ 14,000, will most likely be visited.
The 4-hour candle chart is a good place to look for a possible entry opportunity, seeing where previous momentum started and take advantage of it to see if there will be incentivized new purchases as it usually happens. In the graph below they are marked.
To confirm that bulls are using these zones to re-enter, look for signs that they have regained control. A good idea is to look for constant resistance breaks on smaller time frames.
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