Bitcoin (BTC) has closed out another week, the penultimate before February concludes. It was a week of very choppy price action, as bulls and bears fought to define the degree of correction in the crypto markets. This MTF period of correction, if not downtrending, doesn’t seem to have quite been decided, either, and we may see this continuing into the current week.
We start on a weekly chart, and see that last week had the first testing of an important support zone on the weekly chart, derived from several significant 2019 levels. We see that the trend of the last two weeks was one of shallow correction, but bulls were dogged in their defence of this zone. The EMAs are having a chance to catch up after the explosive January performance, which is healthy.
Looking at the same chart with expanded indicators, we must acknowledge an alarming bearish contraction accelerating on the histogram, which is telegraphing a clear shift in momentum to the downside. This gives us the impression that the MTF picture may remain bearish; but of course, we have seen reversals on this indicator before in previous bull markets. The RSI is retracing into its historic “bull zone”, which has held every retracement during Bitcoin bull markets; and it seems likely that we find support here.
Finally, to wrap up this week’s first analysis, we turn to the daily. Here we note that Bitcoin is still trapped under the uptrend resistance of the previous MTF uptrend (black line). We also see that the 21-day EMA has become a battlezone for Bitcoin’s direction, being crossed over every day for the past seven days, and already today making eight.
It seems important that Bitcoin get over the 21 and stay over it for at least a day, in order to signal any departure from this zone (or, vice versa, stay under it to signal a downtrend). Volume is generally falling, which means we’re slowly reaching the end of price action around this area.
Meanwhile, we can note that Bitcoin’s price churns, blockchain’s stature in the nocoiner world continues to grow.
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