50
Throughout the life of bitcoin’s two-year bull run, it has been confined within two macro trends: one parabolic and one linear — both on a logarithmic scale:Figure 1: BTC-USD, 1-Day Candles, Macro TrendThe parabolic envelope (black curves) has confined the entire bull run throughout the last two years. Over the weekend, we saw a test of the lower curve that proved to be proper support and propelled the market into a bounce that now has the market testing the upper linear trendline (purple lines) at the time of this article:Figure 2: BTC-USD, 2-Hour Candles, Test of Upper TrendlineAs the bitcoin market approaches the upper trendline, the price action will coincide with a test of the previous all-time high. Expect this to be a point of resistance with possible market turbulence. However, if we manage to break that resistance level and hold support above the trendline, there is no clear resistance until we test the parabolic envelope in the upper $8,000s. If we look at the macro indicators for this move, we see some signs that have proven to be indications of short-term rallies leading to corrections:Figure 3: BTC-USD, 1-Day Candles, Bollinger Band TrendThe last two corrections bitcoin has seen came on the tail of a minor pullback that rebounded to a new all-time high. The one-day candle trend is, so far, showing a repeated pattern that has led into a reversal each time it tested the upper parabolic curve. A rounding of the Bollinger bands during an upward move (shown in purple) is a forecast for decreased upward volatility that will lead to either a consolidation period or a reversal to the lower Bollinger bands. While a reversal is not required of this move upward, one can speculate that once the price tags the upper parabolic curve, we could see a pullback to the lower Bollinger bands on the one-day charts. A pullback to the lower Bollinger bands would see support quite nicely with the lower parabolic curve.One of two outcomes can be expected from this move upward: either we will test the upper parabolic trendline and reverse, or we will break above and consolidate before continuing on a very strong bullish move to new highs. However, these macro moves have become increasingly more demanding on the market as we continue to get squeezed within the parabolic envelope. The forecast of the Bollinger bands indicates we are not likely to see a sustained move higher without a consolidation period or a pullback.Summary:Over the weekend, bitcoin saw another test of the lower parabolic curve that proved to be strong support.After testing the parabolic curve, the market rebounded and has now established a new all-time high.If this trend continues, bitcoin could see prices in the mid to upper $8,000s before any noticeable resistance stands in the way of the price growth.Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.The post Bitcoin Price Analysis: BTC Pushes All-time Highs and Tests Historic Resistance appeared first on Bitcoin Magazine. read whole article



Related Links

  1. Bitcoin Price Analysis: Bitcoin’s All-Time High Tests a Historic Reversal Point
  2. Bitcoin Price Analysis: BTC Makes New Highs as the Market Tests Historical Support
  3. Bitcoin Price Analysis: Choppy Market Conditions Lead to Tests of Parabolic Resistance
  4. Bitcoin Price Analysis: Head-and-Shoulders Reversal Pushes New Highs
  5. Bitcoin Price Analysis: Amid Continuing China Rumors, BTC Fails to Break Key Resistance
  6. Bitcoin Price Analysis: Potential Wyckoff Distribution May Spring New All-Time Highs
  7. Bitcoin Price Analysis: Bearish Continuation Likely as BTC Tests Strong Support
  8. Bitcoin Price Analysis: Crucial Tests of Historic Support Could Lead to Further Pullbacks
  9. Bitcoin Price Analysis: Bitcoin Tests Pivotal Resistance Levels Following Strong Rally
  10. Bitcoin Price Analysis: BTC Markets Anemic After Initial BCH Trading