Bitcoin Technical Analysis, April 2019

Introduction

Rising institutional investment into Bitcoin and blockchain related projects result in an increase in speculative adoption, as we enter Q2 ’19. The overbought nature of the number one cryptocurrency currently shows a sharp price decline on the intraday level, which also indicates oversold setups on major technical indicators. Come along as we dive into price and trend deciding patterns of the BTC. For more crypto technical analysis, visit Cryptocointrade.

Technical Analysis

BTCUSD: Monthly Chart

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The formation of double bearish accumulation signaled on December ’18 and January ’19 was anticipated to follow a similar path as the pattern triggered on September and October ’18. On the contrary, that was not the case as a bullish accumulation pattern shifted the trend to bullish on March ’19, fixing up a bullish support level at 3767.0. Price at the moment hovers above the 4384.0 and 4218.0 levels and there’s a high likelihood of price closing beyond these levels. Probably, this is a good moment to do some bitcoin arbitrage trading.

BTCUSD: Weekly Chart

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A swift rush in price that cut through a bearish accumulation in Q4 ’18 launches the beginning of a bullish trend as the trend backtracked and resumed by the firing of a bullish accumulation on February 25. The Bitcoin price has so far risen by 37.87% following an unexpected breach of a critical resistance level of 3882.0 triggered by a bearish accumulation pattern on January 14.

BTCUSD: Daily Chart

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Hidden divergence patterns are great at showing trend continuations. From the above chart, two bullish hidden divergence patterns in succession with a bullish accumulation pattern were triggered on March 16 and 29 following a bullish Fakey pattern on March 05. At a 4.02% risk from the divergence pattern and attaining a 33.4% price increase, the pair broke below a bullish accumulation pattern on Apr 11 indicating weakness of intraday bullish trend.

BTCUSD: 4-HOUR Chart

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Persistent bulls force the Bitcoin price to close above important resistance levels on March 31 and April 02. A breakout of bearish accumulation on Apr 02, 20:00 and triple bullish accumulation on April 05, 08:00 added extra growth to the value of the BTC.

A bearish Fakey pattern on April 10, 20:00 triggered a sharp decline of the BTC price. At press time, a breakout of bearish accumulation on April 12, 08:00 shows the path to a bullish trend continuation.

BTCUSD: 1-HOUR Chart

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An intraday viewpoint of the BTCUSD as shown above started by a breakout of bearish accumulation on April 14 for an approximate 2.3% price gain. On April 15, the bears repaid the move by a decline of bullish accumulation support, building resistance at 5200.00, as price went an extra step to break into the support of April 14 at 5054.8. Coming to the end of the April 15 candle, the pair continued to show accumulation of bullish pressure with strong support at 4997.0 indicating a bullish opportunity.

Major Resistance Levels of Bitcoin (BTC)

1-Hour

5200.0

4-Hour

5373.9, 5488.0

Daily

5488.0

Weekly

6741.4

Monthly

8506.7, 7788.0, 7429.2

Major Support Levels of Bitcoin (BTC)

1-Hour

5054.8, 4977.0, 5052.9

4-Hour

4071.0, 4112.0, 4172.0, 4745.0, 4834.0, 4992.6, 4934.7

Daily

3767.0, 3939.0, 3948.4, 4842.2, 4960.2

Weekly

3215.2, 3405.3, 3761.2, 3882.0

Monthly

3215.2, 3767.0, 4218.0, 4384.0

Conclusion and Projection

Despite an overextended bullish trend, buyers from an intraday viewpoint are observed to retrace the trend prior to resuming in the upward direction. Therefore, paying attention to rejection of bearish accumulation resistance levels will lead the way to entering long positions. We project the pair to attain a long-term target of 7788.0.

 

 

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