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Weekly Bitcoin Technical Analysis (November 29th, 2021)
History for the week (From 22-28th/Nov, 2021)
Opening price: $58,617, closing price: $57,274 => Spread is $1343, down about 2.3%).
Highest price: $59,444, lowest price $53,256 => Spread is $6188 (According to data from Binance exchange).
BTC/USDT weekly chart
On the weekly chart, the price formed a hammer candle, showing that that the selling pressure have reduced on the weekends. However, we cannot confirm that the price will reverse in this correction. We need to wait for the signal of the next 2 candles. There is a high probability that Bitcoin price will return to test at $53k area and then form a bullish reversal candlestick pattern in the 1-2 weeks. We expect the bulls will push the price back up to the previous high at $66k. Conversely, if a weekly candle closes below the $53k price area, the selling could accelerate. The pair could then drop to the support levels at $50k, $45k respectively.
BTC/USDT daily chart
The pair is still in a downtrend on the daily chart. The price is below the MA20 of the bolinger band. The factor for Bitcoin to reverse an uptrend is that the price must break above the MA20 of BB and close above the temporary trendline (~$60k) as shown in the figure.The price is the possibility stop at $53k because the lower border of the BB has closed and it’s good signal for us.
BTC/USDT 4H chart
Similar to the daily chart, the Bitcoin price is still in a downtrend in the 4-hour time frame. Nevertheless, the RSI has formed a bullish divergence, indicating that the selling pressure could be reducing. If bulls push the price above the trendline, the pair could rise to $60k.
Bitcoin price will likely fluctuate between 55k and 60k in the next few days. If the bulls dominate the 60k price area, the price will likely increase sharply to 66k.