BOTS crypto news week 13
Bitcoin has been moving around the all time high of late February around US$58,500 for more than a week now.
Last week I indicated that the 58.500 US-dollar border was a strong resistance. Nevertheless I considered the chance that this resistance would be broken down to be realistic. My expectation was based on the daily timeframe on which bullish divergence was visible. This is often a forerunner of a trendreversal and could be an indication that there is still further upside .
Last week's forecast came true. Bitcoin indeed broke the 58,500 US dollar barrier and ended up around 60,000 US dollars. Currently bitcoin is trading around 59,000 US dollars. So that is still above the 58,500 US dollar mark.
As long as the 58500 US dollar remains as support, I assume that the blue supply line will be tested. This is located around 65,000 US dollars. If the 58,500 US dollar barrier still cannot hold, then it is very likely that the lower blue demand line will provide support around the 55,000 US dollar barrier. If the lower blue line does not hold either, then very strong support around the 52,000 US dollar level remains.
Things are looking great for Bitcoin right now. We are in a consolidation pattern, and are even trading above the key region around US$58,500. It is quite possible that this region will hold as support and an advance towards the upper blue supply line will be made.
This week, Ethereum gained a lot of ground against Bitcoin. Ethereum was in a symmetrical triangle last week, but broke out of it. In the article 'the future of Ethereum', I indicated that if the 2,000 US dollar barrier was broken, it would act as support and 2,500 US dollars would be the next station.
At the moment Etherium is trading above 2,000 US dollars and a kind of double bottom has been formed on the support. This indicates that the 2,000 US dollar border is now acting as support and that upside is next.
A hidden bullish divergence is also visible on the RSI. Hidden bullish di vergence can be recognized by lower lows on the rsi and a higher high in the price. This is an indication that the trend will continue, in this case Ethereum's uptrend. I therefore consider it likely that Ethereum will move towards USD 2,500 this week.
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.