There has been a 10% increase in Bitcoin – there’s still more to come!

Last Updated: 27. November 2023By

Almost exactly four weeks ago, I had last pointed out the chart technical breakout signal to you in Bitcoin and announced further price gains. That’s exactly how it happened. At the time, Bitcoin was trading just under 34,000 US dollars per piece, now it is over 38,000 USD! That’s a return of 10%.

Bitcoin with several faulty short signals Already from the end of October, several short signals were shown in the following daily chart, which went back to the middle indicator. This indicator adds up the last ten days on which there were price gains or price losses compared to the previous day. The blue part of the indicator had risen above the upper red line four weeks ago and was therefore in the zone in which a sell signal could come. Finally, this signal occurred three times in a row until mid-November – as the red arrows with the designation „short signal“ make clear.

Nevertheless, the cryptocurrency didn’t care at all. The Bitcoin slowly and steadily continued to rise. Not as in the last analysis within a very short time by several 100 US dollars, but at least along the green upward trend line shown in the following chart.

In addition, the RSI indicator at the very bottom had already approached the overbought area above 70 points at that time and had been moving in this upper area for more than two weeks without a correction occurring. The reason for this could be the usual fixed seasonality. In the chart you can see the seasonal forecast line (gray), which was created based on historical price data. This line also shows a steady increase.

Figure 1: Chart analysis Bitcoin to USD. The daily chart is displayed.

Source: TAI-PAN

Seasonally remains bullish Exactly this gray line now indicates a trend reinforcement in the direction of the north. Until the end of December, the Bitcoin should rise another 10 to 15%. The blue arrow in Figure 1 shows where the journey could go.

At least based on the price behavior of the last few weeks, the cryptocurrency seems to have gathered strength for such a somewhat stronger upward movement. It is not excluded that we will soon record prices above 42,000 US dollars per piece again.

The next resistance only at 44,390 USD! The journey could even go beyond the 42,000 mark for the cryptocurrency. After all, the next chart-technical resistance zone is only to be found from 44,390 USD, as the weekly chart since October 2019 shows (Figure 2). This suggests that the upward movement will probably lead even to this upper mark and then a further consolidation will take place.

Figure 2: Chart analysis Bitcoin to USD. The weekly chart is displayed.

Source: TAI-PAN

The bull market remains intact in Bitcoin. A short-term correction expected four weeks ago did not come, which is an indication that Bitcoin is in demand. Figure 2 shows four candles at a high level, so it is very likely that there will soon be a break-out to the upside.