Bitcoin price weekly analysis – 15.4.2019
Bitcoin price rose during last week’s trading sessions to record a week high of $5,488 last Wednesday, which exceeded the resistance level around the 76.4% Fibonacci retracement ($5,297). However, the bullish momentum failed to keep bitcoin price above this resistance level to drop below it within less than eight hours, after the week high had been recorded. Bitcoin price has been above the $5,000 mark all throughout last week’s trading sessions. So, will the market’s bulls be able to continue on pushing bitcoin price up to higher levels during next week’s trading sessions?
Bitcoin price and the news:
On Thursday, Coinbase launched a new Bitcoin debit card, that enables users to spend bitcoin wherever Visa is accepted. The new debit card would certainly fill the gap made by the ban of all debit cards issued by Wavecrest, around a year ago. The new debit card will be only available to verified users from the UK and EU.
Bitstamp, one of the “big four” cryptocurrency exchanges, has announced last week that it has been granted the BitLicense by the NYDFS, which will mark the exchange’s expansion in the US. The License will allow Bitstamp to offer the trading of bitcoin, litecoin, ether, XRP, and bitcoin cash to customers from New York.
Last week, Bitfinex announced that it is reducing the minimum $10,000 requirement for opening new equity account.s Bitfinex is one of the world’s biggest bitcoin exchanges that handles a considerable percentage of bitcoin’s 24 hour trading volume. The move is expected to drive a large number of users to Bitfinex’s exchange platform.
Resistance around the 76.4% Fibonacci retracement ($5,297) tested twice last week:
Let’s examine the 1 day BTCUSD chart from Bitfinex, while keeping the Fibonacci retracements we extended a few weeks ago, and plotting the Ichimoku Cloud, the MACD, and RSI, as shown on the below chart. We can note the following:
– Last Monday, bitcoin price tested the resistance around 75.4% Fib retracement ($5,297) as we expected during our previous bitcoin price analysis. Even though a day high of $5,373 was recorded on Monday, price dropped on Tuesday below this critical resistance level. This level was retested again on Wednesday and bitcoin price rose up to a week high of $5,488, yet the upwards momentum couldn’t keep price above the level of the 76.4% Fib retracement. A bearish engulfing candlestick pattern was formed after the week high had been recorded. This reflects the strength of the resistance around this price level, in addition to the long upwards shadow of the candlestick corresponding to Wednesday’s trading session.
– The RSI values 72 (> 70), which means that bitcoin is “overbought” at the current price level. As such, we can expect a short downwards price correction attempt that can take bitcoin price down to the 61.8% Fib retracement ($4,874), before resuming moving towards the North during the upcoming week.
– The Ichimoku Cloud is “greenish” with expanding area, which reflects that bitcoin price will continue on rising during the upcoming 2-3 weeks. The Conversion Line (blue) has also crossed above the Base Line (red) which is another bullish signal conveyed by the cloud.
– The MACD indicator is bullish and in the positive territory. As such, after a short downwards price correction attempt, we can expect bitcoin price to continue on rising towards the next resistance level around $5,973.
Bitcoin price resisted by the 20 period SMA on the 4 hour BTCUSD chart:
Let’s examine the 4 hour BTCUSD chart from Bitfinex, while plotting the 20 period SMA, the RSI indicator, and the Bollinger Bands, as shown on the below chart. We can note the following:
– A bearish piercing candlestick pattern was formed following price surge above the 76.4% Fib retracement. This bearish reversal signal reflects the strength of the resistance around this price level ($5,297).
– Even though bitcoin price was above the level of the 20 period SMA during the week before the last, it is now being resisted by this moving average. Downwards price correction is likely to continue on until candlesticks start forming again above the level of the 20 period SMA.
– The Upper Bollinger band resisted further price surge last Monday, yet bitcoin is currently not overbought (RSI = 45), so price is likely to continue on rising next week after a short downwards price correction attempt.
Bitcoin price rose up to record a week high of $5,488 last week. Our technical analysis predicts bitcoin price to continue on rising towards the next resistance around $5,973, after a short downwards price correction attempt.