Last week was a good week for Bitcoin. After the currency gained traction and reached $3,727 on Monday, the experts were left to wonder what is next for Bitcoin.
Although the ambition to reach $4,000 did not seem so elusive, the investors were advised not to trust the false recovery very fast.
Was the crawl past $3,800 a celebration too soon?
Still dominant on the overall cryptocurrency market cap, Bitcoin has a share of 52 percent. The market itself reached $143 billion this week at its high.
Bitcoin Price: Weekly Chart
Bitcoin bulls once again did not fail to guard the resistance of $3,800 that was previously established.
Such a pattern was also detected earlier and it accelerates directly towards the primary levels of support.
Bitcoin’s weekly chart shows that the price fluctuated within an expected range and it was just a matter of hours.
Once again, weekends proved to be the perfect time for Bitcoin’s more crucial moves.
On February 24, Bitcoin bulls managed to reach a weekly high of $4,210. That same Sunday, it was also documented that the price started descending.
Just several hours later, a price of $3,801 was recorded, eventually making the lowest point of the weekly chart.
Regular higher lows were displayed the following day, and on February 25, Bitcoin encountered yet another price breakout with a total of $3,905.
Bitcoin Price: Daily Chart
Upon a closer look at Bitcoin’s price, it was observed the relative strength index levels were surpassed.
The daily chart, as a more detailed presentation, showed the RSI again arrived at the high level of 78 it has not reached since July 2018. Back then, Bitcoin was balanced to $8,000.
However, the volume of daily trading suffered where no significant improvements were recorded.
The days leading up to the weekend, and even a week prior, it was spotted the volume looked promising and ended positively.
Backtracked to then, the bull market was perceived to be formed.
Support levels, as the chart shows, lie at 38.2 percent with the $4,083 price. Before retrieving back to $3,850, the resistance converting into support level of $4,000-$4,016 reached a Fib level of 61.8 percent.
Bitcoin Price: 4-Hour Chart
The four-hour chart is a meticulous demonstration of the levels of the stochastic relative strength index.
Last week, the metrics indicated the sellers’ probable take-over of the market, since the RSI was recorded to already be inside the overbought area.
This week, the stochastic RSI level seems to go a step further. According to the numbers, it would be no surprise if the relative strength index crosses the overbought zone.
If this actually happens, there is a high possibility a temporary adjustment will be initiated down to the support levels we previously discussed.
After such a rally, it will be reasonable for this to occur.
The general overview of this week’s Bitcoin price fluctuations demonstrates the significant support and resistance levels Bitcoin is about to face.
Already outpacing the $3,950 and $4,050 resistance, Bitcoin is now coming up against a $4,200 level, which is expected not to be an effortless breach.
If in fact, Bitcoin bulls see attaining a $4,200 horizontal altitude next down the line should be reaching $4,300 and $4,400.