NYXBT Bitcoin Weekly Chart

Traders kept trying to catch the bitcoin falling knife last year but they only receive bloody hands. Keystone highlighted the positive divergence with the indicators during January and February expecting a bounce and up she goes. The tight standard deviation bands squeeze out a move to the downside in November but squeeze out an upside move in April. 

Bitcoin has violated its upper band so the middle band at 4625 is on the table. Price is poking up through the resistance from last July nearly hitting 9K over the last couple days. Bitcoin is currently trading at 8717 (the chart is not yet updated).

The ADX purple box shows how the uptrend was very strong during the glory days of 2017. Bitcoin then receives a neggie d smackdown. Interestingly, however, the MACD pokes higher back then hinting that bitcoin will return to the lofty levels some day in the future.

The possie d bounce occurs as expected this year although the strong follow-through is a bit of surprise. Keystone was in GBTC this year but exited the long trade missing the parabolic move over the last couple months. Well, what's next?

The stochastics are overbot and negatively diverged wanting bitcoin to pullback for a week or so. The RSI, histogram and MACD line, however, are long and strong wanting more higher highs in bitcoin. Thus, price will likely move down a week, then up a week to a new high to satisfy the RSI, then down a week or so, then back up again for another higher high to satisfy the MACD line and then perhaps a week or two of chop, and then a roll over to the downside would  be expected on a weekly basis.

Thus, after Keystone shines his crystal ball with a dirty shirt sleeve, bitcoin should move higher on the weekly basis into the 9200-9600 resistance area. The top, on the weekly basis, for bitcoin is likely in about 3 to 7 weeks. As the chart progresses, this target top area can be pinpointed much better. So, around late June or the first half of July, bitcoin will likely top out in the 9200-9600 area and roll over for a multi-week decline say into August and September.

Keystone does not own bitcoin and does not currently have any related positions. Keystone made money on GBTC this year as mentioned above but is not in it. The GBTC daily chart is in neggie d so it will be spanked lower in coming days but the weekly chart is long and strong so price will recover and print new highs on the weekly basis.

Other bitcoin-associated plays are; RIOT, LFIN, BLOK, BTSC, KODK and OSTK. Eastman Kodak and Overstock are in the basement and cannot catch a break despite the big bitcoin rally although their weekly charts are positively diverging. BLOK remains elevated since lots of investors believe in the blockchain technology which is at the root of the digital currency craze. If the stock market tanks, consider buying some shares of BLOK as a long-term (months and years) holding. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.