- Bitcoin is likely to end the current week (Sunday, UTC) on a positive note, having recorded losses in the previous three weeks. Currently, prices have risen 10 percent monthly.
- The weekly gain could be much higher if prices invalidate a bearish pattern of lower highs with a UTC close above $ 10,956 (high of August 20).
- BTC can end the week on a flat note or with losses below $ 9,767 (Monday’s opening price) if the recent trading range of $ 10,400- $ 10,800 is violated downwards.
- A breakdown of the range would put the bears in a dominant position and open the doors for a fall below $ 10,000.
Bitcoin (BTC) is showing weekly earnings to date and seems on track to end its longest losing streak of seven days in nine months.
The main cryptocurrency is currently trading at $ 10,750, which represents a 10 percent increase in the weekly opening price (Monday) of $ 9,767, according to Bitstamp data.
The price increase is preceded by three consecutive weekly losses: the cryptocurrency fell 3.67 percent in the seven days to August 31, having fallen 10.49 percent and 1.77% in the previous two weeks .
BTC attributed the losses for the last time for three consecutive weeks in November 2018. At that time, the cryptocurrency had fallen 1, 12.56 and 29.15 percent in the first, second and third week, respectively.
- Mass sale prices for November 2018 plummeted from $ 6,544 to $ 3,474.
- BTC revived the bear market or the massive sale from the $ 20,000 record with a drop below $ 6,000 in the second week of November.
- Prices bottomed out at $ 3,122 in December.
Compared to that, the last losing streak seems less harmful and is part of a consolidation of several weeks, which represents a bullish depletion after a stellar surge of $ 4,000 to $ 13,800 in the second quarter.
If prices print a UTC close above $ 9,767 on Sunday, the three-week downward trend will end. Meanwhile, BTC will record its first four-week losing streak in three years if prices close below $ 9,767 on Sunday.
That said, BTC is likely to make weekly earnings, according to historical data.
As seen earlier, BTC drew several three-week losing races across the 2018 bear market.
However, despite the strong bearish mood, the cryptocurrency managed to stop the sale repeatedly by making profits in the fourth week, although most of the time, the relief did not last long.
As of now, BTC is in a bull market. In addition, trading volumes fell in the last three weeks, a sign of a bear trap.
That said, the probability of BTC closing the week with losses or on a flat note will increase if the recent trading range of $ 400 is violated downward in the next 24 hours or so.
4 hour chart and daily
BTC has been largely restricted to a trading range of $ 10,400 to $ 10,800 (top left) since September 3. Essentially, the recovery since the August 29 low of $ 9,360 has been exhausted.
A high volume break above $ 10,800 would imply a resumption of recovery of $ 9,360 and could generate a break above $ 11,000.
A more reliable indicator of bullish revival would be a UTC close above the highest low of $ 10,956 created on August 20 (top right), as discussed yesterday.
A bullish close above $ 10,956, if confirmed, would open the doors to $ 12,000. The weekly gain could be much greater than the current 10 percent if prices close above $ 10,956 today or tomorrow.
However, the weekly profit would be low or the cryptocurrency could close the week in red if prices fall below $ 10,400 with high volumes.
A high volume range breakdown would mean victory for the sellers in the tug of war in progress with the bulls. As a result, prices could fall back into four figures, even more, since key weekly indicators such as the convergence histogram of moving average convergence have become bearish for the first time since February.
Disclosure: the author has no cryptocurrency assets at the time of writing.
Bitcoin image via Shutterstock; charts by Trading View