Technical indicators do not yet show clear weakness.
The price has passed a short-term downward resistance line.
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The price of Bitcoin (BTC) rose gradually during the week of November 9-16. Although it failed to close above $16,000, it came down to validate the recently surpassed resistance as a support and then began to rise again.
During the week of November 9 to 16, the BTC rose slightly, creating a small bullish candlestick with a wick at each end. The price peaked at $16,494 but fell sharply shortly thereafter, closing below $16,000.
Bitcoin Technical Indicators
The technical indicators do not yet show any weakness, and no bearish divergence is present. The stochastic oscillator has not yet generated a bearish crossover.
However, the price is moving within the important fibonacci resistance zone 0.768, located at $16,140. The BTC has not yet closed above this zone.
The next major resistance is at $17,264, the fibonacci 0.854 retracement level.
BTC Weekly Close
The BTC retests a level of support
The daily time scale shows the importance of the $15,800 zone, which was resisted until the price exceeded it on November 12.
Since then, the zone has converted to support, resulting in the formation of a long lower strand on November 14. This is a sign of buying pressure.
As long as the price moves above this zone, the possibility of a continuation of the upward trend remains high.
BTC Daily Time-frame
In the time-to-day scale, the technical indicators have not yet shown a decisive weakness, but are relatively close to it :
The MACD has started to lose momentum but has not yet started to decline.
The Stochastic Oscillator has not formed a bullish cross but is not rising either.
The RSI has generated bearish divergences but has also not completed a “failure swing” pattern (the inability to create a higher peak).
The action of the RSI is very important, knowing that a decline below 70 could not only complete the failure swing peak, but also generate a move below the overbought zone. This would be a bearish signal.
BTC Technical Indicators
In the shorter term, the price has passed a downward resistance line in place since the November 13 peak.
The BTC then quickly passed the 0.618 fibonacci resistance zone. This is a strong sign, increasing the likelihood that the rise was the start of a new upward movement rather than a correction.
A short-term decline could occur, possibly to validate the downward resistance line. That said, it seems likely that Bitcoin will resume its upward movement.
BTC Descending Resistance Line
As long as the BTC is trading above the $15,800 zone, which is now converted to support, the potential for bullish continuity remains high.