Bitcoin’s price action in recent weeks is pushing the entire crypto-market hard and fast.
A strong pullback occurred at $3,000. Down to just under $2000 (a 33% drop in just a couple of weeks!).
Then a decisive breakout to the $4,000 level (a 100% gain in just a month!).
Let’s take a look at the charts!
The first chart shown below is a 4-hour Heiken Ashi chart for bitcoin.
(Don’t know what all that means? Keep reading these blog updates and you’ll discover the ins-and-outs of predicting price movement using magical indicators on price charts — just like an expert stock market investor.)
Suffice it to say that green means up, and red means down. Each one of those thick lines on the chart represents a period of 4 hours (hence why it’s called a 4-hour chart).
Here you can see many green lines in a row (each one is called a ‘candle’). However, there’s also a red candle and the MACD indicator shows some short-term exhaustion – I can see us settling at this new level… at least for half a day 🙂
Tomorrow is the start of a new week and I’m expecting a strong upwards response from many altcoins due to bitcoins movement over the weekend. Time will tell.
Let’s look a little deeper…
Bitcoin’s Weekly chart (where each of the thick green or red lines represents one entire week) is simply incredible.
The past week fews have seen some of the biggest weekly gains in all of bitcoins history.
From around 3200 USD to a whopping 3869 (just shy of the $4000 level).
And the most interesting part to me is the MACD indicator is showing a strong sign of continuation upwards. Could we see $6,000 bitcoin within another few weeks? The chart suggests it’s entirely possible!
Ether’s daily chart shows a strong move over the past 10 days or so, with today’s candle being red and indicating that momentum is a little tired.
MACD looks tired too, so perhaps we’ll consolidate at this price level for a few days before continuing upwards.
We’re waiting for the TK cross-over (which I’ll explain in another blog) which will be VERY bullish on the 1D chart.
Litecoin shows a very interesting pattern at this time. The weekly chart shows how much Litecoin has grown over the past few months, and right now seems to be consolidating very well at current levels around $40 to $50.
I fully expect this to break out of its consolidation range very soon with a potentially explosive continuation upwards from $50 to $70 and beyond.
Bitcoin Monthly Chart:
A pullback wouldn’t surprise me. Neither would continuation. We’re in the twilight zone of bitcoin pricing and I expect strong volatility in the months ahead.
Altcoins will go right along for the ride with bitcoin, and in many instances, far exceeding bitcoins growth — which might even look calm-and-steady compared to the growth of some altcoins.
Place your bets folks. This is the opportunity of a lifetime.
Important: This blog contains information, supplied by Wirex Limited, which may be of general interest to investors, but is not intended to cater for your particular requirements and is not intended to be relied upon for the purposes of making or not making any investment decisions. It is not investment advice. You must make your own decision as to the suitability of an investment for you and if you require advice you should consult a properly qualified financial adviser. Past performance is not a guide to future performance. Please remember that the value of investments and any income from them can go down as well as up and you may not get back the amount you invested.
…like I said. Place your bets. This IS the opportunity of a lifetime.