Technical Analysis Deep Dive Into Bitcoin
Bitcoin fell sharply early in the week, only to slam into the bullish/bearish pivot line that was given right here (last week) as major technical support. This shows the power of proper technical analysis. Bitcoin saw a solid bounce off the $60,000 pivot line, rebounding over $62,000.
The bullish/bearish pivot line on Bitcoin is major support. As long as price holds above it, a positive bias remains based on probability for further upside to $68,000.
The stock market remains increasingly important to Bitcoin. For the last three months, Bitcoin has been more correlated to the NASDAQ than anytime in the last three years. This means, as long as the stock market keeps grinding higher, Bitcoin can continue to rally.
However, should Bitcoin break the $60,000 (which would most likely happen on stock market weakness), there is no major support until $51,500, followed by $49,000.
Based on pure technical analysis, Bitcoin is still holding the $60,000 level, thus a bullish bias remains.
Verified Investing analyzes the data and charts to give non-biased, probability based research. We encourage investors to ignore the narratives in the mainstream media and the hype on social media. Getting rid of those and focusing on charts will make an investor much more profitable.
