Is Bitcoin about to reach a new annual high?
The great awakening of Bitcoin rising above $13,000 has filled the market with positivism. Will it be looking for another annual high?
BTC is about to close one of its best weeks of the year, after jumping from $11,500 to $13,217 in a matter of 3 days. Today Bitcoin went a little further, reaching a new annual high of $13,350, but it seems there wasn’t much strength to go on, and today we see the price receding.
This situation makes us wonder if the upward momentum will spread quickly, or if the market needs to breathe before it continues to hit new highs. To find out, we have made the following analysis.
Technical analysis of Bitcoin price
In the weekly time frame we observe an excellent candle about to close, capable of reaching the target of $13,147 predicted here in CryptoTrend. Immediately after the zone was reached, the offer stopped at the price, but the bullish force has resumed.
What we observe from this graph is a developing momentum, a product of the medium-term upward trend, and even though it may have already ended there is still no definitive sign to confirm it.
In this vein, we may still see a new annual high soon before a corrective process begins. Will $14,000 be the next target, it is quite likely.
Before we think too much about this scenario, let’s look at the daily chart to see where most of the probabilities are.
Weekly Bitcoin Price Chart Source: TradingView. Weekly Bitcoin price chart. Source: TradingView: TradingView.
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Bitcoin seems determined to back off a bit before looking for a new yearly high
From the daily candlestick chart we can see how since Bitcoin reached the new annual high today, the bears exerted downward pressure, and it seems that the decline has begun.
In the short term the trend is clearly upwards, followed by the 8-day EMA and 18-day SMA moving averages crossing upwards. However, after the search for that $13,350 peak, it is already quite healthy even if it is a small setback.
If we mark a Fibonacci from the point of the beginning of the momentum, to the developing downward slope, a valid retracement would be to look for the $12,550 minimum. Below the 61.8% level may also be a good place to pick up demand, which means a search for the $12,000.
After this expected setback, Bitcoin will go looking for a new annual high, where they will most likely be visiting the 2019 high zone, close to $14,000.
Prediction: Bitcoin will search for a new yearly high after a small setback. Source: TradingView. Forecast: Bitcoin will look for a new yearly high after a small setback. Source: TradingView: TradingView.
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The 4-hour candlestick chart is a good place to look for a possible entry opportunity, seeing where previous momentum started and taking advantage of it to see if new purchases will be encouraged there as it usually is. In the chart below they are marked.
To confirm that the bulls are using these areas to enter again, look for signs that they have regained control. A good idea is to look for constant resistance breaks in smaller time frames.
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