The week has been extremely positive for bitcoin. Bulls were able to break the $9,198 high and after two consecutive days of +5% gains each, the price sits confidently above $9,300. The breaking increases bitcoin’s momentum alongside an increasing bull volume. It is also a great sign of an imminent bull. The daily Relative Strength Indicator is almost overextending while the bulls could go further upside.
Short Term Forecast
Forecasts predict continued positivity as the daily chart shows a clear and strong uptrend. The 4-hour chart has also formed a bull. For the last 24 hours, the RSI has overextended more than 24 hours. Normally, this would indicate a steep pullback.
However, the pullback is never guaranteed to happen as the RSI may overextend way above 80 and 90 points before settling. At the moment, the bulls are supported on $9216 and at $8,862 on the 4-hour chart.
On the other side, the hourly chart is sideways and cannot give much information for the moment. What we can confirm, however, is that the bulls have managed to sustain above the 12 period EMA.
Long Term Forecast
The weekly chart is yet to confirm an uptrend while indicators suggest it’s close to. What traders need right now is for the bulls to break the $10,370 or set a higher low compared to the previous $6,345 then break the next most recent high. Whichever way it chooses to go, there is plenty of space to work with, considering the 12 and 26 period EMA is also on the verge of a bull cross.
A bull cross would be significant, considering that the last one was last seen in April 2019, which coincided with the bull run to $14,000.
The monthly chart awaits for the weekly trend to adjust and confirm a higher low at $6,430. But as mentioned, with the amount of space to work with, the monthly chart is, in fact, an uptrend.
Other Technical Indicators
At this point, most technical indicators signal that traders should buy in the long and short terms. The oscillator is neutral on the monthly charts while the Moving Averages continue to signal a strong buy.
On the weekly charts, the same signals continue to display. This month has been quite positive for the flagship currency, which has experienced a significant increase in volume, which has been higher than the previous 5 months.
Bitcoin has also managed to break the descending parallel line formed on the weekly and monthly charts. With halving on the horizon, we might possibly see a $10k by the end of January.