Bitcoin Analysis Daily/Weekly charts
Chart provided by Tradingview.com
On the Bitcoin (BTC) Daily Chart you can see in the first section that since the start of the year BTC has been making a series of lower highs and there is no sign that this is changing as of now. Until BTC can make a higher high from the July high then BTC has limited upside.
The 2nd section which is the MACD shows that there are 3 crossovers to the downside after each high in price. We just had another crossover to the downside in this July rally so this means that there is still positive momentum although it is slowing down for the upside moves and may start accelerating to the downside if it crosses down below the zero line.
The 3rd section is the RSI and you can see by the 3 blue arrows that the RSI hit highs also on the rallies. However, if you look at the RSI closer you can see that the indicator hit higher highs since March and yet the price diverged from the RSI. Each rally took more energy to move up and still price couldn’t move to create a higher high. This negative price divergence would also confirm that until price can hit a higher high then BTC has more risk to the downside and the outlook for BTC can not change until we break above the July highs of $8500.
On the Weekly chart:
The weekly chart doesn’t show anything that really stands out different than the daily other than the MACD.
The MACD is trying to crossover to the upside of the zero line but there really isn’t anything to take action on. Often times a test of the zero line occurs from both the upside and downside. This testing of the zero line could just fail here and start falling down very fast. The opposite can occur where the MACD crosses above the zero line and momentum will start accelerating to the upside. However, where price currently stands there is no action that can be taken that would help stack the deck to being right on a trade. Right now, there are no signs that entering the market is in anyone’s favor.