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Is this a new bullish Bitcoin Rally? | Technical Analysis

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@lenonmc21
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We have experienced a new bullish rally in the bitcoin in the last few days. Many analysts had predicted a strong move for the asset, as it had been in a price range between $8000 and $9000 respectively. In these instances, according to my analysis there were two possible scenarios for the breakout of this range in search of new highs or lows which are

  • A period of "Distribution", where basically the whales or also called "strong hands" are leaving their positions so that the supply dominates the demand and the price has no other choice but to go down. I had some doubts since the price gave me indications of this period, so I was very attentive to what the price could do.

  • On the other hand, I was also thinking about the possibility of a "Re-accumulation" period, where basically the whales take a break and put the downward forces (supply) to the test again, where they accumulate as much as they can and the price has no other choice but to go up and give you the so called "Creek Jump".

BTC-USDT BINANCE Weekly Chart

Here we can see a weekly graph of the price of Bitcoin. Basically, I will detail everything I can see on the chart and what reflects the price structure of a rising trend. By marking the Fibonacci retracement from the highest to the lowest point, we can see how the price broke through the 38.2% Fibo with a good volume, in addition to this we can see in the volume how the supply was disappearing in the price evolution, which marked a bullish structure.

Now we see how the price is above the weekly pivot point and having a clear resistance in 50% of the Fibonacci Retracements, although at the time of writing this publication is making a break of that point. In this longer time period, we could mark as the closest "Take profit" the R1 of the pivot points that practically coincides with the 61.80% Fibo point. The RSI (Relative Strength Index), is close to point 70, approaching overbought.

Daily BTC-USDT BINANCE Chart

Here we can see more in detail what the price could be in the medium term. However, we can clearly see the range of prices in which the asset was and also the upward trend that has had since approximately March 19, marking a clear structure in its price, only slowed by the period of re-accumulation of the same. Also, seeing the Fibonacci retracements marked from the low to the high near $14000, it has stopped at a resistance near $11400 in the 23.60% FIBO, at that point I marked the Fibonacci extension, having my 2 bullish targets which are

  • One in the 50% in the $12900
  • The 61.80% in the $13800

Then we have a clear overbought RSI, however, volume and demand are accompanying the movement, so according to my perception and analysis the probabilities are that it will continue to rise.

Conclusions

Don't take this analysis as an investment recommendation, it is simply my opinion of what is happening with Bitcoin, so the recommendation is that you can do your own analysis and research. However, I will try to publish much more frequent analyses of the main cryptosystems in order to keep you informed about the possible movements of some assets with higher market capitalization.

Posted Using LeoFinance