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Bitcoin Outlook on the Weekly Timeframe


The weekly chart of the bitcoin is quite interesting. We see that this one was a reversal week, and the price is making a Harami. One of the significant reversal figures in candlestick analysis.

To properly view this chart, please enlarge by clicking the top right arrowed square.

We still need to complete the week, but so far it seems a credible price reversal. If on Saturday evening this bar closes at this or a higher level, there is a high probability that this correction from its $13,868 highs is over and a new leg up is developing. We can observe, also, that the latest three weeks the price has been making higher lows and that the price has respected the trendline connecting the lows.

If we look at the Stochastic oscillator, we see that it’s the first time since February it is going to make a bullish crossover out of its overbought area. That fact is, in my humble opinion, very upbeat.

Also, we see the price moving above the +1 Bollinger line, while this indicator keeps heading clearly up.

Volume is still low for the week, but it is due to the bears not yet panicking and holding their positions.

As a second image, let’s observe that the BTC Futures continuous contract is showing a much clear engulfing pattern.

Overall, it will be very bullish a weekly close above the $10,700 resistance level, which would break through the previous weekly top.

As a cautionary note, please remember this is just a scenario, and the price can do whatever it wishes. Do your homework and trade with proper position sizing and risk management.



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