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Bitcoin technical analysis

Last week, the price of Bitcoin was corrected to 4000.00 around the middle line of Bollinger bands and the bottom line of the ascending channel. Here, a reversal and the beginning of growth to the levels of 4130.00 and 4218.75 (Murrey [7/8]) are possible. The consolidation of the price below the key level of 4000.00 may cause a decline to 3906.25 (Murrey [5/8], the bottom line of Bollinger bands).

Technical indicators do not give a clear signal. Bollinger bands are directed upwards, confirming the preservation of the uptrend. Stochastic is directed downwards. The MACD histogram is decreasing in the positive zone. In general, the price reduction within the uptrend seems the most likely.

Support and resistance

Resistance levels: 4062.50, 4130.00, 4218.75.

Support levels: 3906.25, 3750.00.

Trading tips

Short positions can be opened when the price consolidates below the level of 4000.00 with the target at 3906.25 and stop loss in the area of ​​4060.00.

Long positions can be opened from the level of 4064.00 with the targets at 4130.00, 4218.75 and stop loss around 4000.00.

Implementation period: 4–5 days.

Scenario

Timeframe Weekly
Recommendation SELL STOP
Entry Point 3980.00
Take Profit 3906.25
Stop Loss 4060.00
Key Levels 3750.00, 3906.25, 4062.50, 4130.00, 4218.75

Alternative scenario

Recommendation BUY STOP
Entry Point 4064.00
Take Profit 4130.00, 4218.75
Stop Loss 4000.00
Key Levels 3750.00, 3906.25, 4062.50, 4130.00, 4218.75