The Weekly Close #12: Bitcoin in the Year of the Rabbit 🐰
Bitcoin has decisively moved up and away from the lows in the last couple of weeks. But we must acknowledge that the 200 SMA around $25K is a major hurdle on the road ahead.
新年快乐 — Happy Lunar New Year!
📈 The weekly bitcoin chart
Bitcoin is doing great. The chart above shows the significant Horizontal Support and Resistance levels (HSR, in blue). The bullish trend line (green) and the 21-week Exponential Moving Average (EMA, in yellow).
Bitcoin broke through both Resistance around $20K and the 21 EMA. Now BTCUSD has printed another green candle with a solid open and close above the 21 EMA, closing at the highest level since last summer.
The next target is the 200-week Simple Moving Average (SMA, in white), currently around $25K. It’s likely to act as Resistance, and we expect it will take some time and some pullbacks before we can break through it. However, once bitcoin succeeds in closing a weekly candle above the 200 SMA; it will be the perfect setup for a new bull market.
🔥 To bring it all together:
Bitcoin is moving higher. The reclaim of the 21 EMA showed a lot of strength. The next challenge is the 200 SMA, around $25K. However, it’s unlikely we can just cut through $25K at the first attempt. A pullback to the 21 EMA, around $20K, is likely. Even dropping back to $17.5K for another test of the bullish trend line is not out of the question.
We remain bullish. The price has decisively moved up and away from the lows in the last couple of weeks. But we must acknowledge that the 200 SMA around $25K is a major hurdle that probably needs time and a pullback before bitcoin can break through it.
🐦 Inspirational tweet before you go:
Have a wonderful week, dear friends; take good care of yourself and your loved ones. You can reach us on Twitter, Telegram, or e-mail if you have any comments, questions, or suggestions.
Greetings from Phnom Penh, and talk again soon!
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