Bitcoin price completed a fourth consecutive week with a green candle close for the first time since April 2018, reaching highs during the week of $4040 and finding support when $3800 was tested. We take a closer look at the price action and what lies ahead for the week.
The Weekly chart shows that going into the week, Bitcoin price 00 is applying pressure to the 20-week moving average (the center on the Bollinger bands). This has proven too much to overcome in the bear market, with the only two previous breaks during 2018 failing the following week.
This is clearly a critical level, with BTC price finding another reason for resistance on top of the $4,000 psychological level. Despite this, bitcoin continues applying pressure to the upside, rather than the downside.
The upper and lower bands (being two standard deviations from the 20 WMA) are still rather far apart and suggest that any sizable move would have the scope to take BTC towards either upwards to $5000 or down to $2500.
Support in the 200 WMA lies below…