Bitcoin is the fast-growing Cryptocurrency in the world. A lot of South Africans have been following bitcoin as a first interest in crypto investment, some smart investors have turned to millionaires because of the Bitcoin. Bitcoin has reached a new high a few weeks back, let us take a look at the technical analysis and see where the bitcoin might be heading, this is just a forecast and not a financial investment advice.
Monthly Chart
The month of October has been one of the most active months of bitcoin, we can see a very bullish candle that has the most amount of momentum compared to the past four months. In most cases when a new candlestick starts it usually leaves a wick on either side. The month of November can be bearish at the beginning but the overall momentum for Bitcoin is at the upside, but we see a little bit of sellers exhaustions also on the current October candle.
Weekly Chart($60 000)
Bitcoin is priced based so it is advisable that if you trade it you must pay attention to price, because in most cases that is where it will react. We see it is ranging around $60 000 price which also has turned to a resistance. Weekly chart has a doji on top which might also signal a short-term consolidation(range). The overall momentum is still bullish as we have not seen any major candlesticks around this are, but lower timeframe could help us understand more better in structure and everything we need to conclude about our next move.
Daily Chart
Daily chart has an exhaustion zone around $60 000 price mark, which also was displayed by the dojis we saw on weekly chart. Also, this chart has been forming new lows rather than new highs. For the past 10 days we have seen 6 bearish candles compared to bullish ones around this price point at the moment.
4 Hour Chart
The price has been forming more lower highs and lower lows the past weeks, that means we are in a short-term bearish structure. The Friday close (29 October 2021 00:00 UTC +2) was bearish and the price is continuing to be bearish at the moment, so it might be safe to look for bearish setups to trade Bitcoin at the moment, but as a very volatile and bullish cryptocurrency it is better to look for bullish setups again and then enter the buys because they are higher probable compared to sell setups with Bitcoin. At the moment the price is ranging above the $60 000 price but if this cryptocurrency continues to be bearish, we can see a break below the $60 000 price. In some coming months we may expect Bitcoin to hit 1 000 000, 00 South African Rands.
It is very advisable to do your research and understand the spread, commission, leverage and all the requirements needed to trade bitcoin because it is not the same as trading the normal currencies, you can do your research on WikiFX to get more insight on what are you dealing with when you are trading cryptocurrency.