Bitcoin Market Overview

Market Overview: Bitcoin

The price reached a strong resistance zone formed by the downtrend line and 12000.00 resistance level. We have to watch closely for the price action in this zone. It will give us understanding of further price movements. If the price bounces from this resistance zone, we’ll see a downward movement to 10000.00, 8000.00 and 6000.00 support levels. Which level will be reached, it will depend on the power of bears near these support levels. But such variant of price movement is not support by indicators.

We should be ready to see a breakout above the downtrend line with further upward movement. There are some reasons for this. The weekly chart is bullish. MACD supports the upward movement. DMI becomes bullish too. The previous huge upward movement to 20000.00 level was corrected and now the market is ready to continue the main uptrend. The breakout looks more logical. If the price can move above 12000.00 level, it will reach 15000.00, 17000.00 resistance levels. The price will be able to reach the previous high at 20000.00 level too, but for this the market will need a good fundamental support.

评论:

The market gives a reversal candlestick pattern at the downtrend line. We should be ready to see a short term retracement to 10000.00 support level.