BTC Weekly Technical Analysis by Mako Sharks

Bitcoin kicks off its week at 114.5k! Consolidation vibes continue with a couple of recovery candles and a constructive Sunday that once again brings hope back and shifts sentiment toward a more neutral stance. The question remains whether Bulls can show their horns once more and secure a positive monthly close or if Bears will spice things up again even with nothing more than a continued consolidation within the range. Momentum remains constructive yet fragile which suggests the market is entering a critical decision phase where a volatility expansion is imminent. 😐 🕯 😳

During the past week Bitcoin moved mostly within a range between the daily 21SMA 112.5k, 55EMA 113.7k and daily 200EMA 108.2k, and with the recent Sunday breakout it managed to sneak above 21SMA & 55EMA. What is extremely important now for Bulls and Hopium is to get a weekly closure above the weekly 21SMA 113.4k and in ideal conditions follow that with multiple daily closes above the Previous Week High (PWH) 115.4k which would show strength and a potential challenge of the resistance above.

The key for Bulls is holding above the daily 200EMA and the Previous Year High (PYH) with both sitting at 108.2k on a daily closing basis, because any successful daily close below it and the Previous Week Low (PWL) 106.5k would potentially mean a new Lower Low (LL) compared to the October low 103.6k and would put into question the structure and send Bitcoin into a test of the lower 100k zone as support which, if it fails, opens the door to the 90k zone. Weekly BBWP suggesting that real move is yet to come. 🐈 💗 😴

Bears have had their “five minutes” and as already mentioned Bitcoin is still “dancing” inside a consolidation after the drop. To further compromise Hopium the ideal move for Bears is to push Bitcoin below the daily 200EMA and PYH 108.2k and get any successful daily close this week below the PWL 106.5k which would certainly send Bitcoin into a test of the 100k zone and the weekly 55EMA 99.4k.

For a start Bears would benefit from a monthly close below the monthly 21SMA 113.4k and in ideal conditions for the beginning of the “Mordor” scenario they would need any successful daily close below the weekly 55EMA 99.4k! 😈 ❌ 🐻