As mentioned in my previous analysis, Bitcoin (BTC) remains strongly upwardly oriented on large time units. On a weekly basis, the trend is still strongly bullish.
Bitcoin returns to this trend after a corrective phase.
The BTC has taken a first step by breaking out of the $10,500 mark. Bitcoin Up also moved back above the Tenkan Weekly on Ichimoku, which had been playing the role of resistance until now. While this news is very positive, there is still an important step for the BTC to take.
Bitcoin in WeeklyBitcoin in Weekly
Indeed, Bitcoin finished the week just below a major resistance zone in Weekly. It will be imperative to close above $11,500 or even $12,000 to hope to reach the highs of 2019.
Nevertheless, the trend remains bullish and it’s always good to move in the direction of the trend. As long as no reversal pattern is visible, it is therefore necessary to bet on a continuation of the upward trend on a weekly basis.
The progress of the RSI is also noteworthy. After a perfect rebound on the 53 support level, the RSI attacks the resistance of the 60 level. Exceeding this RSI resistance would be a strong signal, and could herald a powerful upward movement in the price.
In Daily, Bitcoin has been in a compression phase since the beginning of September. After a month of consolidation, we finally have the outcome.
A few days ago, we could observe the break from the top of the compression triangle. This was followed by the breakage of the second oblique resistance level and then the horizontal resistance level of $11,100.
The Bitcoin in DailyThe Bitcoin in Daily
There is no longer any doubt that the outcome is bullish. Despite still low volumes, we can note a certain return of volatility. The Bollinger Bands spread and move upwards, driven by the price. Bitcoin finally returns to an uptrend on a daily basis. The signals are clean and validated.
Firstly, the formation of a double dip pattern can now be confirmed. By exceeding the $11,100 resistance, Bitcoin has also validated this bullish reversal pattern.
The BTC returns to an uptrendThe BTC returns to an uptrend
The same phenomenon can be observed on momentum indicators, particularly on the RSI. Exiting from the top of its symmetrical triangle and exceeding the equilibrium point (which also acted as a resistance zone), the RSI also returns to an upward trend.
All the indicators turn green again and point to a resumption of the uptrend. Also noteworthy is the return of the price above the Ichimoku kumo, now with massive support under its feet.
The Bitcoin with the Ichimoku indicatorThe Bitcoin with the Ichimoku indicator
Indeed, the $11,100 pivot level, now reinforced by the SSB Daily, is becoming an important support for Bitcoin.
If a pullback on the $11,100 is not to be ruled out, there is no doubt that Bitcoin is once again in an uptrend. Bitcoin has just moved to the top floor, and now finds itself in a box between $11,100 and $12,100. Therefore, the primary objective now is to regain the $12,100 resistance.
Bitcoin’s short-term situation is also on the rise. In H4, the trend is clearly bullish. The price is also moving above all moving supports, and momentum indicators support the movement.
For the moment there is no bearish divergence, on the contrary! We even see the indicators falling while the price is stagnating or even rising. This looks like a hidden bullish divergence, and if the $11,450 breakout occurs, we should expect another strong upward momentum.
The Bitcoin in H4 and H1The Bitcoin in H4 and H1
We find something quite similar in H1, with a price that stagnates or rises slightly, while momentum indicators plunge. While theoretically the trend is neutral on this scale, the state of the indicators shows that the potential for a further rise is great.
Nevertheless, the price is currently in a range between $11,250 and $11,450. If the upper limit is crossed, a further significant upward push is to be expected. Otherwise, a return to the $11,100 support level is to be expected. This correction, if it happens, would not call into question the Daily trend or even H4, which are still trending upwards.
Ether follows, but does not confirm