BTC Eyes Those Higher Targets After Superb Weekly Close
BTC
part1
BTC may have printed one of the most important weekly candle closes of the entire year, which could potentially
lead to the start of a trend reversal.
The previous week started with a false breakdown and snap back up, trapping bears who shorted the potential
bottom at $29.2k. BTC then pushed above the near-term resistance at the 21-day MA – a successfully backdated
support, and began a powerful rally, leading to what could be the strongest weekly close in a long time.
PART2
A key highlight of the week for BT was the 7-month downtrend on the daily Relative Strength Index being broken, followed by a daily close above the 50 day MA with follow-through higher.
Previous price action suggests significant upside for TC whenever a downtrend in the daily RSI is broken and BTC closes above the 50-day MA after spending some time below the key level.
The chart below shows BTC back in October 2020, closing above the 50-day MA and breaking the downtrend on the daily RSI, causing a massive breakout to the upside.
PART3
Through last week and currently, shorts continue to get liquidated. Earlier today, 3278 BTC shorts were
liquidated in a 3-hour window, making last week’s liquidations look small in comparison. It appears the bears are
in denial of this rally as they continue to pile on shorts.
BTC made a strong weekly close, forming the snapback above $30k, formed a bullish engulfing candle, printed a
massive hammer candle, and held the 50-week MA as support. This type of close signals a potential bottom and
trend reversal ,
PART4
as major bottoms in pullbacks tend to form these kinds of candles.
This week, it is very important for TC to follow through to the upside to validate the bullish hammer candle
printed. At the time of writing, BTC soared to an intraweek high of $39.8k, finding initial resistance at the top of a
2-month long trading range at $40k.
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SOURCE:
BTC Eyes Those Higher Targets After Superb Weekly Close
