BTC all gear up

Bitcoin price weekly analysis 17.3.2019

Bitcoin price managed to successfully stabilize above the $4,000 mark during most of last week’s trading sessions. The week started by a downwards price correction attempt that pulled bitcoin price to record a week low of $3,897 on Tuesday. Thereafter, bitcoin price began rising steadily recording a week high of $4,100 on Saturday. The market is clearly bullish now and seems to be moving along a rising upwards channel, as higher highs have been successively recorded during most of last week’s trading sessions. Chances are high that we can see it rise towards the next resistance level around $4,198.6 (38.2% Fibonacci retracement) during the upcoming week.

Bitcoin price and the news:

Paxos announced last week that it is planning to launch a new set of digital assets backed up by stock and precious metals. Paxos has already conducted successful experiments on transactions involving tokenized assets and bonds. Chad Cascarilla, Paxos’ CEO, reported that the company is already testing transactions with blockchain based tokenized assets and revealed their plans to launch a gold backed blockchain asset later in 2019.

SEC’s Chairman, Jay Clayton, commented last week that the SEC has made its final decision regarding the state of Ethereum. Given the decentralized nature of the Ethereum network, its current transactions, and structure, the SEC has ruled out that Ethereum’s transactions are not to be treated as securities transactions.

Last Wednesday, Coinbase added Stellar Lumens (XLM) to its list of supported coins. XLM deposits started on March 13th, 2019. According to a post published on Coinbase’s blog, XLM will have to go through the exchange’s typical listing process which includes four stages, before full trading of the coin is enabled on Coinbase’s platform.

New rising channel on the 4 hour BTCUSD chart:

Let’s examine the 4 hour BTCUSD chart from Bitfinex, while plotting the Williams Alligator’s SMAs and the MACD indicator. We will also keep the Fibonacci retracements we plotted in a previous bitcoin price analysis, as shown on the below chart. We can note the following:

– The week started by a downwards price correction attempt that pulled bitcoin price down to record a low of $3,897 on Tuesday. A new rising channel is now evident starting from March 5th, as shown on the above chart, with a rising support level. The week low was supported by the rising support level, which led to reversal of the downwards price correction attempt, as evidenced by the bullish piercing candlestick pattern which formed as bitcoin price touched the rising support level. The strength of support of the rising support level can also be evidenced by the long downwards shadow of candlestick that formed on Thursday, preventing further price drop.

-Bitcoin price rose steadily during the second half of the week rising above the $4,000 price mark and moving through the new rising channel. After bouncing off the rising support level, the Williams Alligator’s SMAs exhibited a bullish alignment, with the green SMA (lips) on top, the red SMA (teeth) in the middle, and the blue SMA (jaw) below. As such, we can say that the alligator has “opened its mouth and ready to eat”, so we can expect the bullish momentum to increase even more during the upcoming week.

– The MACD indicator is also bullish as it is in the positive territory and the blue MACD line is above the red signal line. As such, we can expect bitcoin price to rise towards the next resistance level around $4,198.6, which corresponds to the 38.2% Fibonacci retracement, during the upcoming week.

Rising uptrend line on the 1 day BTCUSD chart:

Now, let’s examine the 1 day BTCUSD chart from Bitfinex, while plotting the Ichimoku Cloud and the MACD indicator. We will also keep our Fibonacci retracements, as shown on the below chart. We can note the following:

– A rising support level can be spotted starting from March 8th, which marks the beginning of the new bullish wave. This rising support level took bitcoin price to break through the resistance around $3,778.5 (23.6% Fibonacci retracement), which has turned now into a support level.

– The Ichimoku Cloud is conveying multiple bullish signals. The cloud is green in color, the Conversion Line (blue) has crossed above the Base Line (red), and candlesticks are above the Base Line (red). All these three bullish signals confirm that the bullish wave is likely to continue on pushing bitcoin price to higher levels during the upcoming 2-3 weeks.

Conclusion:

Bitcoin price stabilized above the $4,000 price level during most of last week’s trading sessions. Our technical analysis predicts bitcoin price to continue on rising, so we can see the resistance around $4,198.6 (38.2% Fibonacci retracement) tested during the upcoming week’s trading sessions.