Bitcoin Daily Chart

If the weekly chart looks pretty good in long run, but what about the lower time frame? If we look at the daily chart, we can see that the price tries to break the downtrend line. The previous attempt was not successful, but the price also could not stay below 10000.00, a strong psychological level. It can be a signal that the bears are not so strong as before. Also we have to pay attention to another signal which the market is going to give us soon. The price forms an Inverse Head and Shoulders chart pattern. It belongs to a reversal group of patterns. If the price breaks the downtrend line and after that a neckline, the iH&S will be confirmed and it gives us a trend reversal signal. We should be ready to see a new uptrend. Just it will be better to wait for a breakout above 12000.00 resistance level, as an additional signal confirming the upward movement.

If we look at the main indicators, we can get following signals. RSI confirmed the price reversal from 9200.00 level. MACD histogram and lines support a possible upward movement. ADX line falls to 20 level and it does not confirm any strong price movements. But DMI becomes bullish and when ADX line rise, it will be a good confirmation for a possible breakout above the resistance zone formed by the downtrend line, the neckline and 12000.00 resistance level.

Alternative variant: if the price can't break above the resistance zone, we should be ready to see a downward movement. If the market drops below the right shoulder, it will be able to drop to the support zone at the uptrend lines and 6000.00 support level. We'll have to watch closely for price action in this zone, because the market will be able to give good buy signals. Probably we'll get a double bottom pattern and this zone will be a good starting point for a new upward movement.

Komen:

The price is going to form a reversal candlestick pattern like we had 20 of February. For supporting the breakout and further upward movement, we need a bullish candle as quickly as possible. Watch for price action at 10000.00 level. Now it's the key level.