What a week for Bitcoin right? Like I’m repeating you last weeks it was imminent to see such movement.
Before the actual price action, I want to summarize the week into a couple of words.
First, we broke the 3 years symmetrical triangle at last and we did it with a significant volume. Till this night drop I was a bit concerned cuz we literally skyrocketed and like I’ve told you in the past, such movement without a correction is not healthy. At second point let`s get to this night drop. Yes, it was significant but for me it`s actually a perfectly bullish. Why? You`ll see from the price action below.
Actual PA situation:
- Support and resistance:
- 1st support - $10500 – last MAJOR resistance. This support has been tested already with this night drop and done it`s job perfectly. That`s why I’m bullish about this drop.
- 2nd support - $9000
- 1st resistance - $12500 – almost the last bigger resistance before the clear skies, accordingly to VPVR.
- 2nd resistance - $14000 – the last resistance before the 20K test I can say (the last top + VPVR).
- Somewhere between 1st and 2nd resistance is $10K, which can act as a support too cuz of the psychological level.
- 10 EMA – the price is still above it even without a touch of it.
- 21 EMA - the price is still above it even without a touch of it.
- Correlation between 10 and 21 EMA – Despite the Corona drop every time when the 10 EMA is above the 21 EMA and the price is above both we can predict a very good bull period.
- Parabolic SAR – Another bullish week and there`s 14 weeks bullish signaling.
- Weekly pivot point is $9757.62. We`re far from it so far, so I can say that next week can be positive too.
- BTC volatility is still under 40 actually so more movements can be expected.
See ya next time.