There are some mixed signals for Bitcoin currently. That said, a monthly close above $61,000 is positive, and a long downside candle wick on the weekly time frame suggests strong buying. Is Bitcoin turning the corner?
Bitcoin is continuing to do its thing – nothing more, nothing less. A breathtakingly huge climb from under $40,000 up to $73,800 in the space of 8 weeks has resulted in a nice long sideways consolidation that is building beautiful price structure on top of the support of the 2021 crypto bull market.
$BTC bounces from range bottom
Source: TradingView
In the daily time frame it can be seen that the $BTC price has bounced from the $61,000 support, and that it might be headed back to the top of the range, if the price can battle through the smaller resistances on the way there.
Weekly candle shows plenty of buying last week
Source: TradingView
Zooming out a bit on the weekly time frame there is perhaps concern that last week’s candle closed underneath the $63,000 price level. That said, there was a lot of buying up of the $BTC price last week, as the long candle wick down bears testament to. The resulting dragonfly doji/pinbar candle is usually found at the bottom of corrections, and is a sign of a potential bullish reversal from here.
Monthly stochastic RSI could be a concern
Source: TradingView
On the monthly time frame, the 4 candles above the $61,000 support are holding this nicely, and the price structure that is building on top is clearly seen. Nevertheless, one significant worry is the fact that the monthly stochastic RSI (bottom of chart) has crossed down below the 80 level. It is to be hoped that this negative momentum will bounce straight back up (blue fast line is starting to bend back) or at least bounce up off the 50 level. The concern here is that this latter scenario could take a few months before curling back to the top again and bringing that positive price momentum back to Bitcoin.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
