The Weekly Bitcoin Breakdown for 5/11

What’s up traders,

It’s another Monday, so we got another weekly forecast for ya’ll. Let’s start of with our key 242 level from Last Week’s Bitcoin Forecast.

Bitcoin Price at the Key 242 Level

When we look at this key level, we see that at first, it provided resistance, as we talked about last week. After a short retracement, the bulls came back even stronger and blew out that level. Since then, bitcoin has been making higher highs as it consolidates and settles down. Recently, we have seen bitcoin consolidating above our 242 level which is a very good sign.

Moving out to a daily chart…

Daily Bitcoin Trend

There’s a lot to see here. First off, for the first time in a while the 9 EMA is crossing and stacking above the 18 EMA indicating bullishness. Stacking is a term used to refer to the velocity at which two EMAs move away from each other. The faster they spread away from each other indicates the strength of the move. Here, we are stacking nicely. A bullish sign.

Secondly, the green areas illustrate that the 213 low may be a long term low in the bitcoin market. We can see this because the market has put in a higher swing low on the left and a higher swing low on the right. This structure indicates a bottom in the market. Combined with the stacking EMAs and the bullishness at the 242 level, it looks good for bitcoin.

Lastly, we can see resistance is turning support as bitcoin continues to take out old highs and make higher lows.

So what’s going on for this week? Let’s look at some price targets and play out some scenarios…

Bitcoin Targets for this Week

For this week, upside targets are 254, 260, and 275. 275 is a huge weekly level and should definitely see some profit taking if we are to reach there this week. 254 and 260 are daily levels that are easily reachable this week.

As for down side targets… If bitcoin were to fail at 242, it may be reaching for an Optimal Trade Entry long denoted by that grey bo at 235 to 231. If price were to break past that, we would need to reconsider our trading bias as a bull for the week.

Here’s my weekly Bitcoin Forecast Video that I upload every monday to supplement these articles:

Feel free to subscribe to get the first look at all my bitcoin forecasts plus free access to my pro bitcoin trading series

Anyway, there it is. That’s how I see this upcomming week.

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Other than that, Good luck and good trading and get that money 😉