Last week we posted that Bitcoin lost the battle against its resistance zone. In the last seven days BTCUSD experienced weakness and traded down to the $34.4k area, before bouncing back up to around $38k:
If the cryptocurrency raises its head up, it can still see the 9-week SMA (body) and the 15-week EMA (wick) resistance lines hovering above and declining.
As the current week begins BTCUSD trades below last week’s body, however, the candle of last week may suggest buyers may continue bidding it up. It will be interesting to watch: will BTCUSD push up and through the resistance lines? Or will it head down potentially towards $30k?
The moving average lines seem leveling horizontally above the last candle on the right, presumably suggesting an end to the slope, however, pay attention, that is because we now copy the moving average value of the last complete bar/candle to the moving average value of the incomplete bar/candle. In this case, the last candle on the right represents this week, which just began. It is an incomplete candle. Since moving average values are calculated with closing prices, and we still don’t know this week’s closing price, we can’t calculate a moving average for this week. Therefore, traders can only reference MA values of up to last week.