Bitcoin price breaks through all time high and marks new highs!
Both Bitcoin (BTC) and gold serve as stores of value for times of crisis. Bitcoin could overtake gold in hardness (or rarity) after halving in 2020. The picture shows a Bitcoin between gold nuggets.
The Bitcoin price is unstoppable. There is no sign of corrections. There is only one direction – upwards! But not only investors are happy. Traders are also delighted. This article discusses in more detail which Bitcoin Code long term and short term opportunities are arising. To do this, we look at the price on a weekly, daily and 4-hourly basis.
A strong end to the week for the bitcoin price
It has taken three years for the Bitcoin price to finally reach a new high. Now it has finally done so and many are wondering if it will continue at such a rapid pace. After all, one has suffered enough in the last three years. At least, that is the opinion of many investors who only entered the market at the end of 2017. How can you find good entry points now to get the most out of your investment?
You can find the long-term trend relatively quickly in the weekly chart. This is clearly directed upwards. The last horizontal resistance, the zone around the last all-time high, has been broken. New resistance and support levels must first form. The price will then be able to approach these in the future.
The Relative Strength Index (RSI), an indicator showing buying power, has been in the expensive, overbought zone for several weeks (bottom of the picture). Traders who trade according to the RSI, among other things, are very unlikely to open new longer-term long positions and will hedge existing long positions. The possibility of a correction is relatively likely here.
Support zone in the area of the old all time high.
If a correction occurs, there is a huge support zone in the $16,200 to $19,900 area. With the volatility and price fluctuations in this area in recent weeks, many positions were opened and closed. So for the players in this zone, it is an important price level as they have placed their stops below it to hedge their positions. If the bitcoin price were to fall one floor lower, the zone between $14,300 and $16,000 would come into play.
Another support factor in the lower zone just mentioned is the Moving Average 200, which shows the long-term trend and is calculated from the last 200 candles of the price (black line below the price). On a daily basis, this is always a good support. In the event of a correction into the lower zone, the Moving Average 200 will also have arrived there.