Bitcoin price increased yesterday to print a high of around $285, yet today’s trading started by an increase in the selling volume which pulled the price downwards to around $271 at the time of writing of this analysis. It seems that bitcoin price will resume rising within a few hours to attempt approaching the $300 level.
By examining the 4 hour Bitfinex (BTC/USD) chart from tradingview.com and plotting the William’s Alligator indicator accordingly (look at the below chart), we can conclude the following:
- Since the 27th of February, bitcoin price has been closing on higher lows every day. Accordingly, we can now spot a rising support level as shown by the green trend line on the below chart.
- The SMAs of the William’s Alligator indicator have just started to realign into a bullish alignment; however, if the bullish alignment becomes more pronounced during the next few hours (jaw on top, teeth in the middle and lips at the bottom), we can see a bullish wave start today to push the price upwards again.
By studying the 1 day Bitfinex (BTC/USD) charts from tradingview.com, calculating the 20, 50 and 100 day EMAs and plotting the MACD and Vortex indicators, we can conclude the following:
- Bitcoin price is still above the 20 and 50 day EMAs which reflects the new uptrend, but it is lower than the 100 day EMA. When can expect to see an even stronger bullish rally when bitcoin price rises above the 100 day EMA.
- The MACD indicator is still in the positive territory and signals a bullish wave, so we expect bitcoin price to resume rising within the next 48 hours.
- The downtrend red line of the Vortex indicator has crossed above the uptrend blue line. The bullish run will be preceded by a rise of the uptrend blue line above the downtrend red line.
Conclusion:
Bitcoin price resumed rising yesterday to print a high of $285. Our technical analysis is in favor of a further rise in bitcoin price within the next 48 hours.
Charts from bitfinex