Bitcoin Hits Highest Weekly Close Since January 2018, Showing Strong Momentum

After spending the best part of the past week consolidating, Bitcoin took a turn south over the weekend. On the bright side, the king of crypto registered its highest weekly close for over a year. Will it lead to further gains?

Highest Weekly Candle for 18 Months

Today’s Asian trading session has been the complete opposite of last Monday’s. The sellers are piling on the pressure as Bitcoin fell from $11,580 to just above $11,300. A death cross as the 50 hour moving average fell below the 200 hour MA could spell further losses on this time frame. The opposite golden cross on the four hour chart paints a different picture though.

Another long term indicator is the weekly candle chart which is still very bullish despite the attack of the bears over the weekend. According to charts on Bitcoin closed the week just north of $11,500.

The chart shows that Bitcoin closed at a similar price level for two weeks in February 2018. Depending on which exchanges prices are taken from, it could be even further back. Trader going by the twitter handle ‘Nunya Bizniz’ added that it was the first weekly close above the 50% Fibonacci level since January 2018.

“Highest weekly close since Jan 2018.
First weekly close above 50% Fib since Jan 2018.

A bull flag also appears to be forming on the weekly chart which is also a positive signal. The long term view for BTC certainly looks bullish and the current monthly candle is on track to be Bitcoin’s third highest close ever. A lot can happen between now and the end of August however so digital chickens shouldn’t be counted just yet.

There are plenty of technical indicators to look at in efforts to attempt conjecture at the next direction. The stochastic is one which, at the moment, is oversold on the four hour chart. Crypto trader ‘CryptoHamster’ suggested this could lead to short term gains.