As the Bitcoin price ended the week up sharply, let's take a look at what this means for the bulls and bears that go into the week.
The Bitcoin price closed the week at $ 3,650 (+ 6.9%) after finding support in the 50-week moving average, supporting the price at over $ 3,300.
The candle ended up with a bullish fault and a tweezer bottom, indicating a strong bullshit after the cops found support late on Friday.
Despite the strength of the move, which broke through the $ 3,550 resistance, the Bitcoin price could not reach its ultimate goal to reach a higher level of over $ 4,000. The bulls will look for an inevitable profit-taking after an 11% jump on Friday after each retracement.
Looking more closely at the daily position, last week Bitcoin's price action was ultimately limited to a combination of shrinking diagonal resistance and a horizontal resistance meeting at $ 3,700.
This is now a critical stage that needs to be overcome so that BTC is not trapped in another bearish triangle, which would bring the cryptocurrency below $ 3,000 and would most likely extend the bear market for several months.
The bulls are therefore likely to reach a higher low, somewhere between 78.6% and 50% retracement $ 3,400 to $ 3,500, which must be satisfied with bullish volume to pull the Bitcoin price out of the bearish triangle and re-test avoid the low 3,000.
4 hours chart
Looking more closely at the 4-hour chart, BTC seems to be struggling on Monday morning after the bulls refused to reach $ 3,700 on Sunday night.
When the chart seemed too familiar as a so-called "beard" pattern, it means a downside risk.
The Mac-d shows that the moment is bearish, but still above zero. We can also see a volume gap in the VPVR, which could mean that a quick jump to $ 3,400 could happen if $ 3,500 could not hold.
It is striking that the current price action can resolve the upturn on Monday and Tuesday with a close above the previous highs, with resistance hardly rising between $ 3.760 and $ 3.950, which would be a very positive move for the bulls.
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