FX.co ★ #Bitcoin chart analysis

Trading instrument Bitcoin - chart period D1. The overall trend here can be called neutral. The wave structure is building its order upwards. The MACD indicator is in the upper buying zone above its signal line. Earlier a very controversial situation formed. The price was squeezed between levels. When earlier it rose from the very lows it reached the area of the horizontal resistance level 65960. It slightly broke above it, which is clearly an error of the higher level. There was a possibility for a decline here, the level again, plus the CCI indicator was ready to exit down from the upper overbought zone. In addition, a bearish divergence can be seen on this indicator - a strong sell signal. The support at the level is a decent signal. Some decline occurred, but at the same time there is a support level below at 63438. This is a mirror level at the edge of the decline and, as is known, such places are very strong, so at that time a contradiction emerged. I thought the price could pause at approximately this level and a battle between buyers and sellers would unfold. Most likely in the long term Bitcoin will resume its growth. Only it has a habit of moving sideways for a very long time with a wide amplitude. You may sit in longs for more than a month while it breaks out into a new sustained upward movement. But it was visible that the US dollar dominated the market overall and this trend affected this instrument as well. As a result, the price was pushed below the low. At the same time a bullish divergence formed on the MACD indicator in use, a very decent signal for growth. In addition, as confirmation there was a reversal pattern — a descending wedge. Below a mirror level at 60752 was formed; the price tested its area from above (taking into account margin of error) and attempted to rise. For a very long time the price traded sideways at the bottom for several weeks, not daring to initiate the uptrend that was clearly brewing. Ultimately it shot up quite a bit in a few days and the rise continues. Clearly the price will seek to retest the 83034 level. After a prolonged pause and attempts to decline, the price is gradually moving toward the stated target. And despite the bearish divergence on the MACD and CCI indicators used, selling is not recommended. These signals may work, but only after the indicated high is renewed.

Chart H4. For now this week the price is slightly dipping within a narrow descending channel. I still expect an upward movement since the peak mentioned above has not been renewed. Selling is definitely not advised.