#Bitcoin Analysis

11 May 2020

Weekly
Looking at our trend timeframe we can see BTC still remains in an overall downtrend, even after having 7 bullish weeks only to end with a doji like weekly candle. Bitcoin is at a critical point in regards towards price action. Last week's candle pushed as a high as $10,0079 on coinbase, and as low as $8,098. This week (tomorrow actually) is the BTC halving, meaning there will be a reduced amount of BTC you can mine per block making it more valuable. Stochastic RSI showining momentum is in favor of the bulls with no signs of slowing down


Daily
Shifting over to pattern timeframe we can see the price has remain respecting our bulling channel, however we have gound resistance at $10,000. BTC currently testing the bottom of our channel for support, a bounce off this level indicates we will continue to the upside $10,500. However if price closes below the channel we could see a sell off towards $5,000 leaving a double bottom imprint if support is found. Most likely scenario is BTC continues to test $8,000 for support before conituing to the upside. A daily close above $8,800 is a good sign we will continue to the upside. I will be sitting on my hands until then, waiting for a bullish sign on the daily.