Bitcoin Weekly & Monthly Analysis (Video)

Since we are now already a couple of days into October, it is time to look back at September and analyze what the future holds. We will now look at both the weekly and monthly charts for Bitcoin.

Weekly:

Comment: Now, you can see that Bitcoin formed a very bullish looking candlestick for the week. We closed at the very top and that is phenomenal. However, there is always a risk of a pullback, and if that were to happen it would probably go back to 4050 where we do have additional support. Otherwise, to the upside, I do have the next target aimed at 4600. If we are lucky, we could get a major rally and set a new ATH above 5000 but lets begin with 4600.

One negative thing would be the volume, it was lower than the previous week and I would like to see that the volume picks up from here.

Alright, lets have a look at the monthly chart:

Comment: So, in September, we formed a major hammer. It will most likely be interpreted as bullish, however, if we would close October below 4300 then we will probably continue going down from here.

However, the bullish case is more likely in my opinion and I do have 2 different scenarios here. The first one is that we are about to form a flag formation as you can see from the graph and that will likely mean that we will tread water for another month or two, before a major move up. But, the other scenario is more of a quick move to the upside without a flag and I do think that if we do take out 4980 (on Bitstamp) we will head much higher and likely head for 7000 which is a range doubling. The last pullback was roughly 2000 dollars and if we add that range to the old ATH, we would get something around 7000 dollars.

So, overall, it is looking good for Bitcoin, but we have some different paths to consider here and we have to study the weekly charts to begin with.

Happy trading!