As 2019 ends, the stock market is pushing towards all-time highs on a weekly basis. Even though both the S&P 500 and Dow Jones Industrial Average pushing outside of the Bollinger Band indicators, its creator says that people shouldn’t be getting out of the market.
Even if you’ve been investing/trading for 9 years, you haven’t experienced the markets reaction to a new decade yet and its effects might actually be a big deal. On this website, we focus on cryptocurrencies for the most part, but since Bitcoin doesn’t have a history of reacting to a new decade, we’ll look into its stock and gold counterparts to get a feel on whether it changes anything in the long run.
As the year is coming to a close, Bitcoin’s yearly candle will as well. Candlestick charts summarize how price moved during set increments of time and are used by traders to gauge sentiment, support, resistance and trends. This year, Bitcoin saw its largest rejection ever since 2011, according to BNC Bitcoin Liquid Index.
This morning, millions of dollars in short positions were liquidated on BitMex as price drove past 8120. Now, a few hours away from BitMex’s weekly close, bulls are doing their best to push Bitcoin past resistance and turn the 7 day candle green.
This weekly resistance is important especially because it aligns closely with a monthly point of resistance. When resistance is maintained on multiple time frames it could be a testament to the reality of contention in that area.
If Bitcoin breaks through by 7 p.m. CST and can maintain buying power, the next big area of resistance is around 8561. This week’s candle closing closing at a higher price than last weeks open would generally be accepted as a bullish sign for bitcoin. The question is always how long the bullish impact will last.
On the 30 minute chart, we can see that Bitcoin was immediately rejected at weekly the resistance and the bulls and bears are fighting in this area.