Read MoreWelcome back to the cryptowatch channel everyone my name is josh and right now a brand's new bitcoin pattern is forming that could reveal the next potential bitcoin price target and on top of that over on the monthly bitcoin chart we are still in a very rare opportunity which i'll be talking more about that later in this video definitely stick around.
First giving you a quick update on the daily bitcoin chart and nothing much has happened since yesterday we are still finding a lot of support at around 29 to 30 000 as i've been talking about so there's nothing much else to add here on the daily timeframe but looking at the four-hour bitcoin charts we can clearly see this bullish divergence is still.
Playing out on the bitcoin price because obviously the four-hour bitcoin rsi is still in an uptrend and as i've been talking about over the past few days i'm mostly expecting sideways choppy price action just reduced bearish momentum basically due to this bullish divergence and obviously over the past few days that's pretty much exactly what we have.
Seen just more sideways choppy price action after that crash down towards 25 000 that was talking about but while we're looking at the four hour bitcoin charts you can see just here that we're actually forming in inverse head and shoulders pattern which is technically a bullish pattern but this has not been confirmed at the time of recording in.
This video because we still need to see a confirmed breakout above this neckline which is coming in at around 30 and a half thousand and so ideally we need to see at least a four hour candle close above 30 and a half thousand in order to confirm that breakouts but if we could also see a retest of the neckline confirming it as new support that would.
Be extra confirmation but we don't necessarily have to see that extra confirmation it's just if we do that will give us more confidence that we are really breaking out to the upside so that is the level to watch in the shorter term and if we do see a confirmed breakout to the upside then that would activate the technical price.
Target for this pattern which if you're measuring from the candle bodies as more of a conservative price target that will be coming in at around 34 and a half thousand but if you're measuring from the bottom of this candle wick that gives us a price target at around 37 and a half thousand and on top of that it will still have some other points of.
Resistance along the way for example this point of resistance at around 33 000 based on this previous level of support because usually when we break below an important level of support that flips into new resistance but overall in the shorter term looking at this potential inverse header shoulders pattern and this bullish divergence.
Which is already playing out honestly the bitcoin price in the shorter term is not looking too bad especially while we're still holding above this area of support at 29 to 30 000 once again but of course as we head into the new week the stock market's going to open back up again and then that could potentially change the direction of the bitcoin.
Price depending on what the stock market is doing so that will be important to pay attention to and of course i'll keep you updated every day in these videos and just checking the bitcoin fee and grid index today even though the bitcoin price hasn't really done anything over the past couple days we're still in extreme fee at a reading of 10 which is.
Still really low for this index and obviously i talked more about this index in yesterday's bitcoin update video because yesterday was sitting at nine which is extremely low that is the lowest we've been on this index in years so seriously if you missed yesterday's bitcoin update video definitely check that one out if you want more.
Information about this index just here and what it means for bitcoin and just giving you a quick update on the three-day bitcoin chart right now the rsi is still sitting around oversold territories after already confirming one three daily kennel closed when the rsi was in oversold territories and with the recent bitcoin dump this has brought the.
Three-day bitcoin rsi to its lowest point since march 2020 which is very interesting because if you zoom out to the weekly bitcoin charts and bring out these two important moving averages which are the 1 000 day simple moving average and the 200 week simple moving average during that recent bitcoin crash the bitcoin price entered into this.
Price range in between these two important moving averages which gives us an exceptional buying opportunity historically speaking now i want to make it clear that this is not financial advice i'm just telling you what has happened time and time again throughout bitcoin's history and clearly every single time that the bitcoin prices.
Entered in between these two important moving averages has turned out to be an amazing buying opportunity especially if you're holding for the longer term and in case you are new to this channel these two moving averages are coming in at around two thousand and twenty eight thousand so essentially in between those prices just there in that mid 20k price.
Range should be a generational buying opportunity according to the history of these moving averages over a decade basically and while we're on the weekly bitcoin charts of course we have already seen a massive spike in bitcoin's volume on the weekly time frame which usually marks the bottom for a bitcoin crash as we've seen time and time again.
Throughout years worth of bitcoins history now keep in mind out of all of the examples on the screen just here we did have one previous example at the end of the 2018 bear markets where we got that massive crash in the bitcoin price the massive spike in volume but if you're looking closely at the bitcoin price we actually had another two weeks.
Worth of red before we actually bottomed out for that crash but either way if you're just dollar cost averaging during that time period when we're seeing that massive spike in volume after that massive crash you would have obviously done very well either way whether you bought at three and a half thousand or 3.1 k and we actually saw something.
Similar to that back in the middle of last year as you can see the main crash was over when we got that massive spike in volume but the bitcoin price still played out another two months of sideways price action pretty much and we did actually form one more lower low which was around a thousand dollars lower in the bitcoin price compared to.
That initial low when we saw that massive spike in volume on the weekly time frame so essentially just going off all of these other examples over a year's worth of bitcoin's history this massive spike in weekly volume when we see a significant bitcoin crash either means we've hit the bottom or we are very close to the bottom historically.
Speaking and you can say a very similar thing about the monthly bitcoin rsi because right now this is entering into the lower half of the rsi and throughout bitcoin's entire price history we've only ever seen this happen just three other times and obviously if you're looking at all three of those other times this has happened they turn out to.
Be amazing buying opportunities especially if you're holding for the longer term and in fact all three of those previous opportunities also came in confluence with the bitcoin price entering in between these two moving averages so personally speaking i am using this opportunity to accumulate more bitcoin at cheap prices and if you.
Want to know how to maximize your profits in crypto whether or not prices are going up down or sideways then these videos popping up right here on your screen are definitely for you to watch the video in the top left is a full trading tutorial video and in the bottom left is a video showing you how to earn passive income on your crypto but anyway.
That is it for this update i really hope you enjoyed and i'll see you all in the next video