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Bitcoin price charts indicate the most exciting breakout in over a year

May 17, 2020

Bitcoin price (BTC), the cryptocurrency with the highest position by market cap, is ready to skyrocket next week as long as the weekly candle opens above $ 9,200. This would mark the end of a 46-week descending channel in which the BTC / USD pair has been locked since reaching nearly $ 14,000 in mid-2019.

According to Coinmarketcap, Bitcoin’s market capitalization is currently $ 176,072,259,725.

So is it time to wait for a new historic record for the most important digital asset?

Bitcoin price charts indicate the most exciting breakout in over a year
Bitcoin price charts indicate the most exciting breakout in over a year

Daily performance of the crypto market

Daily performance of the crypto market. Source: Coin360.com

The week view

BTC USD weekly chart

BTC / USD weekly chart. Source: TradingView

At the time of this writing, the price of Bitcoin is currently over $ 9,500. It seems almost inevitable that the closing price above $ 9,200 is a sure thing. However, there are no definitive results when it comes to Bitcoin’s price.

however seems likely with renewed retail interest after halvingin particular since the author of Harry Potter, J.K. Rowling recently tweeted its 14.6 million followers and asked someone to explain what Bitcoin was.. This could spark renewed public interest in BTC. Especially if Crypto Twitter didn’t spoil it with silly responses that nobody finds amusing, the chances of this happening would be greater.

Resistance becomes support

BTC USD daily chart

BTC / USD pair daily chart. Source: TradingView

If we go to the daily Bitcoin chart, we can see that The previous resistance in the downstream channel has now become supportUsing the Fibonacci retracement tool gives a little glimpse of where the Bitcoin price might go next.

Bitcoin’s price is currently just below 0.618, which means that the next immediate moves will drop by $ 11,600 ($ 0.786) or $ 8,790.

Even if Downward movement is always possibleIf this happens in the following week, it means that both day and week support has failed, which wouldn’t be good for Bitcoin’s price.

However, This support is reduced within the channel every week. While I’m generally optimistic about the price of Bitcoin, I’m in on it right now I don’t think an advance of 10,000 would last longNot until a new path appears in the charts.

Daily MACD shows signs of reversal

BTC USD daily MACD chart

MACD daily chart for the BTC / USD pair. Source: TradingView

While the charts generally look bullish in the broader time frames, Some indicators in the lower periods show signs of weakness. The Moving Average Convergence Divergence Indicator (MACD) recently showed a bearish cross, and although it almost went higher a few days later, it has since started to decline again.

Given that the weekly MACD still looks very optimistic, I wouldn’t worry too much in the medium term. However, In the short term, a small withdrawal seems imminent as people hurry to take profits from the pre-10,000 levelwhat I would see as a temporary retreat.

The relative strength index

The Relative Strength Index

The RSI looks just as bearish on the daily chart when you approach an overbought area. However, it should be noted that In 2017, the RSI was overbought and continued.

However, if we look at the weekly chart, we’re not quite there yet, which suggests that while a slight decline is likely to occur, the overall situation looks good for the Bitcoin price in the medium term.

The Relative Strength Index

Reduction of mining difficulties

Adjustment of the BTC mining difficulty

Bitcoin mining difficulty. Source: BTC.com

Another important measure that has proven useful in evaluating the future price of Bitcoin is The difficulty of bitcoin mining is currently decreasing and is forecast to fall more than 2% next week.

However, After halving, further downward corrections are expected as mining is no longer profitable. But still, The hash rate has increasedwith an average of 115 EH / s, This is a record high for BTC. That’s 115 trillion (115,000,000,000,000,000,000) hashes per second.

Historically, the price always follows this trend when the hash rate increasesand as this number continues to grow, it is likely that Bitcoin’s price will follow the same path.

Bullish scenario

Close over $ 9,200 Today will be the most bullish signal Bitcoin has seen since before the 2017 rally would set $ 9,980 as the next level of resistance before $ 11,600 is the next target.

Bearish scenario

If it is not above $ 9,200, $ 8,790 is the first level of support, followed by $ 7,600. At the moment, however, I simply don’t see a pessimistic outlook for Bitcoin as likely. Even if the price fell to $ 8,790, it would still remain bullish. But Losing this level would drastically reduce the likelihood of an upcoming bullish rally.

The positions and opinions expressed here are exclusively those of @official and do not necessarily reflect Cointelegraph’s views. Every step of investment and trading involves risks. You have to do your own research when making a decision.

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