By doing a weekly Bitcoin analysis we can see that there could be a new possible Bull wave on this market.
Analyzing in detail the daily chart on Tradingwiew, the sentiment on this market seems more like Bull than Bear.
From the image above we see that not only the price is back to levels at the end of 2017, but the volumes have returned to higher levels than that period.
This is a clear sign of a bull sentiment for Bitcoin.
Price levels
The price levels to watch are different but the most important for this phase are two.
The first is $ 11,000.00 which is the level where it is currently tracking and accumulating according to high volumes.
Once this level is exceeded, it should reach a level of $ 17,000.00 very quickly, or as a result a sudden break down would make it fall to $ 8,000.00, but I doubt it.
The $ 17,000.00 price level could be the springboard for a major bitcoin bull wave that would catapult it beyond its historical max.
Bitcoin operation
So how could one operate in this situation?
If we look at this other chart we can get an idea of how this bull wave is developing for bitcoin.
The trend is creating a movement like: explosion and congestion, explosion and congestion, in a more repetitive way.
Now following the signals provided by the market, we could expect a phase of congestion and then an explosion phase again.
We could do a Long entry if the Bitcoin exceeds the level of $ 13,500.00, confirmed by the high volumes and we will put the target on the $ 17,000.00.
If instead the level is broken downwards I would not recommend a short position when the sentiment is on the upside and we would go against the current.
In this phase the holders generally accumulate instead the traders wait to then enter on the levels of breaking of a resistance or support.
Remember that this is not an investment advice but a hypothesis, always invest your capital that you can lose.
Stay tuned for more developments.