About 4 years ago bitcoin started the new bullish cycle and right now we are at the same point with a similar pattern
As showed in the 2015 chart the SMA50 and SMA200 weekly are containing and compressing the price, and right now we are about to test the SMA50 arount 5700$
If the pattern repeat there will be a rejection from the SMA50 and a decline that will bring us to test again the SMA200 at least one more time.
The SMA's will gradually compress the price until it will breakout from them...the breaking up the SMA50 weekly will act as a strong sign for the new bullish trend, viceversa a break down the SMA200 will increase the chances to reach new lows (sub 3000).
As showed in the 2015 chart the SMA50 and SMA200 weekly are containing and compressing the price, and right now we are about to test the SMA50 arount 5700$
If the pattern repeat there will be a rejection from the SMA50 and a decline that will bring us to test again the SMA200 at least one more time.
The SMA's will gradually compress the price until it will breakout from them...the breaking up the SMA50 weekly will act as a strong sign for the new bullish trend, viceversa a break down the SMA200 will increase the chances to reach new lows (sub 3000).
Note
The similar scenarioTrade active
Price reached the SMA50 Weekly and is stalling at it, as said before this is a major pivot point, if we close the weekly candle below that important sma we have a further confirmation for a strong correction and a final retracement to SMA200
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.