Bitcoin Update — 01–07 — Monthly, Weekly, Daily & 4H
In this update, we will deep dive a little more into Bitcoin long term and short term situations. First, we will look to the Monthly chart followed by weekly, daily and at least 4H charts.
In this chart, we see that the previous ATH (~20k) is big support regarding the monthly chart, so we may hit that support first before we will be heading further up. We could also see that a Bullish Div (green lines) is in the making and that it is still above the 21 EMA (bullish). So it is possible to see a 20k area but I think we will keep above the 21 EMA and making a Higher Low.
On the weekly, we see almost the same as on the monthly. The big difference is that we see a good support area of around 30k. So it is possible that we hold this support zone and will bounce from it and heading moving up. Losing this support will result in a further down move to ~20k.
On the daily chart, we see once more the support zone but now we also see a big resistance around 40k. What is crucial to break before we could say that we are bullish on the daily as well. We see a little downtrend that was close to broken but it bounced back down and now we will look for a new support level. Also, RSI bounced back from 50% down, so also a bearish sign that we are heading back to the support zone. If it will find higher support than 30k we could see a small bullish sign because then it will make a Higher Low. Till that time, be cautious with your investment!
Be warned because we already tested the support zone of 30k around 3 times, the more we test the support zone, the less buy pressure there is, the more chance there is that it will break down.
On the 4H we see a crucial zone to hold (around 33k). If we hold this zone and bounce back up we create a new Higher Low and have enough buy pressure to break the downtrend. This will create a Higher High and we could face the next resistance zone (40K).
If we break down 33k we still have the 30k support zone. After that, we could look at the daily, weekly & monthly chart what will happen then.
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