In today's post, I will do another technical analysis of BTC pricing, based on the classic tool of exponential moving averages, trend channels, and RSI.
To perform this analysis, I used Binance's candlestick chart views for 1 day, 1 week and 1 month respectively, along with the exponential average curves of 72,305 and 610 days, price trend channel. and RSI since 11/09/2017. So I have a broader scope to be able to do a safer analysis with a larger historical series. Remember that this analysis aims at the medium and long term.
Exponential moving averages are the average prices for a given period of time, with the most recent period having the greatest weight in curve making. Thus, in addition to providing a visualization of a trend, they react more quickly taking into account short-term market price volatility.
72-day exponential moving average (EMA 72): orange
305-day exponential moving average (EMA 305): dark blue
610-day exponential moving average (EMA 610): lilac
Trend Channel: Dark red Line
PLEASE NOTE: THIS POST HAS AN EDUCATIONAL PURPOSE ONLY AND SHOULD NOT BE TAKEN AS A BASIS FOR INVESTMENT DECISIONS. THE ANALYSIS REFERS TO MY OPINION ONLY AND I AM NOT RESPONSIBLE FOR ANY GAIN OR LOSS OF OPERATIONS BASED ON TECHNICAL PRICE ANALYSIS.
Let's go!
In this first image we have the visualization of the daily candles in a medium term analysis. As you can see, we have EMAS all pointing upwards, with EMA 72 above EMA 305 which is also above EMA 605. This suggests an upward trend in the medium and long term.
In the image above, a zoom was given to reduce the analysis period and demonstrate the straight line of upward trend in BTC prices, based on daily candles.
HIn the image above the visualization of the candles is weekly and also shows the same pattern of behavior of the EMAS that has already been described, corroborating a possible trend of high prices in the medium and long term
In this last image above, we can see the behavior of monthly candles and we have bullish candles for the third consecutive month, also indicating the possible trend of high prices in the medium and long term.
As you can see from the charts above, the price of BTC is above the mentioned EMAs. This generally indicates an upward trend in prices. On the last day that the downtrend channel was broken and I believe that the beginning of a bull market, there was a trend reversal that was verified on 04/28/2020. However, the upward price movement should follow this gradual increase, which is great for the market, as there are large price corrections (such as the one seen in late 2017 and early 2018).
The RSI is down to 61.53, which may corroborate the bull market I mentioned above.
Although we are in the bull movement, I believe we are still in an accumulation phase and that at any moment BTC will resume the upward price path.
The next (and also strongest) resistance is in the range of USD $ 50,977.00 (Fibonnacci 3.000).
It should be noted here that these Fibonaccis have been plotted taking into account the historical high of BTC prices (USD $ 19,798.68) since 12/17/2017.
Below are the likely supports and resistances for 03/08 and 03/09/2021:
Supports:
03/08 - USD$ 44.890,00
03/09 - USD$ 44.890,00
Resistances:
03/08 - USD$ 50,977.00
03/09 - USD$ 50,977.00
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