Bitcoin is moving exponentially, up to $ 18,000?
Despite all the turmoil in the world, Bitcoin continues to hold up. Bitcoin is still well above $ 15,000, a value that many two weeks ago did not see as possible. Could Bitcoin rise even further this week?
Bitcoin moves parabolically
In recent months, the Bitcoin price has been moving parabolically. Below the price you can draw a trend line that is going up faster, the price goes up exponentially. Will Bitcoin continue to follow this trend line? Then we can see an increase to 18,000 dollars within a week.
Bitcoin finds support
Whether that will happen is of course the question. In any case, it is positive that the price has broken out of a rising channel on the daily chart. You speak of a channel when the price moves between two parallel trend lines. On November 5, the price broke out at the top end. After that, Bitcoin briefly touched the top trend line, and then bounced back. You also call this testing the trend line. Good news, as Bitcoin is now finding support at the top of the channel.
Also support on moving average
We zoom in on the graph, you are now looking at the four-hour graph. The line that runs below the price is the moving average of the past 50 candles, the 50 moving average. In technical analysis this line is also used as a moving support or resistance. In this case, Bitcoin is finding support, which is positive. The upward trend of recent months is still intact. The green arrows show that the Bitcoin price bounces up every time the price looks up the line.
Our expectation of Bitcoin
Bitcoin is still going well, and in the coming days the price could break with $ 16,000. But it can go in any direction, so we describe two scenarios: bullish (positive) and bearish (negative).
You look at the daily chart below. The channel on the chart is the same as at the beginning of this analysis.
Bullish
The first resistance that Bitcoin encounters is 16,000 dollars. Bitcoin succeeds in breaking through this, and the parabolic trend remains intact. Then it can go quickly, and even 18,000 dollars is possible.
Bearish
But what if the price falls? Then 14,800 dollars will be the first support, which is the top of the channel. If the price falls below this trend line, then 13,886 dollars is the next point of support. This price corresponds to the highest price of 2019.