Kvě 12

Parabolic Advance Halts For Now – So What’s Next For Bitcoin Price?

Bitcoin went absolutely parabolic over the weekend! After topping out at $7,500, traders are now wondering what is next.


Bitcoin Price: Market Overview

Last week brought an onslaught of bearish news that typically negatively impacts Bitcoin price 00. But surprisingly, it shrugged at the news and has gone bananas as its dominance rate rose to highs not seen since 2017.

At the moment, nearly every analyst is screaming “bull market” and making calls for what they believe the new all-time high will be.

Friday and Saturday’s amazing run firmly brought Bitcoin above $6,000 to the previous resistance zone where $6,800 and $7,300 held before the November 2018 40%+ correction and the icing on the cake was a quick blow off to $7,500. A number of crypto analysts have also pointed out that while Bitcoin has gone parabolic, the parabola has broken as the digital asset has not set a higher high after reaching $7,581?

It should also be noted that Bitcoin’s lightning quick ascension took place with few retracements and a pullback. In other words, consolidation could be imminent.

Bears are also likely closely eyeballing the current price action to establish short positions right at the current top so traders should exercise care and not FOMO into a position or play the upcoming retraces without some sort of stop loss.

The weekly RSI has entered the overbought zone and as other analysts like Dave the Wave have pointed out, the MACD is more extended now that it was during the peak of the 2017 bull run.

BTC-USD Daily Chart

The daily chart shows that the RSI crossed 85.3779, which is the point that traditionally marked a trend change in BTC price. BTC/USD first topped a$7,489 at this threshold was crossed and then ran a little further to $7,581 before cooling off and entering what is likely to be a period of consolidation.

Going into the weekly close, BTC looks set to close above the $6,300 if not the $7,300, which most traders believed would pose significant resistance. According to the daily and weekly chart, $8,165, $8,200 and $8,500 are the next levels which could pose resistance for BTC to overcome.

The general consensus is that after such an amazing run BTC needs to either consolidate and regain strength or retrace to previous supports as the RSI, MACD, and Stoch are becoming overextended on the daily timeframe.

BTC-USD 4-Hour Chart

Traders looking to catch the dip might set alarms at $5,900, $5,500, and $5,100 in order to play oversold bounces and following bull crosses on the hourly, 4hr, daily and weekly MACD seems to be the best method for putting traders into profit.

At the time of writing the 4-hr chart shows the MACD nearing a bearish cross and the RSI remains in bullish territory.

BTC has pulled back to nearly rest on the 20 MA of the Bollinger band indicator at $6,660. A drop below the 61.8% Fib retracement level ($6,586) is where things could get interesting.

Traders should also keep an eye on the BTC-USD Longs to Short ratio and BTC-USD shorts in general as bears are likely to set up positions at the recent top and additional rejection points like $7,000.

Happy trades friends!

Where do you think Bitcoin will go over the next 48-hours?

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for the analysis are provided by TradingView.]

Trade Bitcoin, Litecoin and other cryptocurrencies on online Bitcoin forex broker platform evolve.markets.  


Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase.fkff

The Rundown

Share
Kvě 10

Did the $41M Bitcoin Theft Create a Buying Opportunity for Binance Coin (BNB)?

Binance Token (BNB) has taken a significant due to the Binance Bitcoin hack but is the recent pullback an opportunity for buyers?


BNB Maybe a Steal as Binance Reels

Since topping out at $25.49 Binance Token (BNB) 00 has pulled back by nearly 27% and the fallout from last week’s Tether – Bitfinex scandal along with Binance’s recent $41 million bitcoin theft are taking their toll on the exchange’s native token.

Clearly, after a more than 500% rally, BNB was ripe for a bit of profit taking and a trend change but the current dump could be more connected to recent events and not a representation of BNB’s value from a technical standpoint.

BNB-USDT Daily Chart

binance

As recently as May 2, BNB was consolidating between $25 to $21 and posting daily lower highs. It’s clear that altcoin was losing strength as it struggled to stay above the 12 EMA The bear cross on the daily MACD corresponds with the April 26th news of Bitfinex misappropriating $850 million USDT to cover their own losses.

BNB-USDT 4-Hr Chart

Today’s pullback brought BNB below both moving averages and the 12 is on the verge of crossing below the 26 EMA. There is the possibility of an oversold bounce occurring shortly as the RSI and MACD are each oversold, but barring a massive influx of buyers, the bounce is not likely to change the trend or extend past $19.50.

On its way to $25.49, Binance Coin blasted through $17 – $21 (61.8% Fib retracement) and the lack of support beneath $19 explains why BNB is slicing through this level towards more solid support at $15. If $17.30 doesn’t hold then the 50% fib level.

Given that USDT and BTC have shaken off and recovered from the same recent events that now impact BNB, it’s likely that BNB will also recover as the public gets over the shock of the largest crypto-exchange by daily volume enduring a $41 million hack. Luckily, it has resulted in zero Binance users losing funds.

In result, the current price could be a buying opportunity for swing traders as a return to the previous range represents a 20 – 25% return and those looking to set up a long position might consider buying a quarter of their expected investment.

Is Binance Coin a buy now under $19? Share your thoughts below!

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for the analysis are provided by TradingView.]

Trade Bitcoin, Litecoin and other cryptocurrencies on online Bitcoin forex broker platform evolve.markets.  


Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase.fkff

The Rundown

Share
Bře 24

Bitcoin Price Analysis: Bears Look to Trap Bulls Into Weekly Close

Table of Contents

As the Bitcoin price weekly candle draws towards a close for the week we take a look at what the performance over the week looks like going into the final week of March.


Bitcoin price: 4-HOUR CHART

Looking at the4-hour chart, we can see that the bitcoin price has spent the last few days oscillating around the weekly opening price of $3965, with the bears continually attacking this level.

The MACD has broken through it zero line having turned bearish on the dump from the weekly highs at over $4056 all the way down to $3920, which along with a generally downward trending MACD implies that the bears are in control going into Sunday evening, however the bulls have proven to defend the weekly candle in the last two weeks of asking.

Should the bears want to define the weekly candle, the mid-week lows of $3920 will be the target, whereas the bulls will want to close above the weekly open of $3965.

1-DAY CHART

A look at the 1-Day Chart shows that bitcoin price is showing signs of struggle to complete the Adam and Eve and Inverse head and shoulders classical charting patterns, which would imply an upside target between $4800 and $5200.

Failed moves typically lead to fast moves, so if BTC cannot break back to test the $4,000 and loses the weekly lows, the 50 and 100 DMA at $3780 and $3730 respectively will be the first line of defense for the bulls. These levels have acted as support since Mid-February when they turned from resistance and into support.

WEEKLY CHART

With only a few hours remaining, the weekly chart shows that bitcoin price is still being capped by the center line of the Bollinger Bands, which is the 20 week moving average.

Should BTC manage to hold the mid $3900s, bitcoin will open the final week of March above the 20 WMA will be for the first time of 2019. It is clear to see that a more definitive move is on the brink of occurring with the pinch of the 200 WMA and the 20 WMA being clearly defined on the chart.

The weekly MACD will print a fifth green bar on the histogram and continues to trend upwards, but has some way to go before it crosses its zero line and is in bullish territory.

BITCOIN SENTIMENT

Looking at sentiment in the Bitcoin market, we can see that the Bitcoin September Futures contract at Bitmex is currently trading around $40 below the spot price, meaning that the expectation of the market is that BTC prices will be lower moving forwards.

This of course presents an opportunity for the bulls who believe the opposite to be true. So they’ll be able to pick up bitcoin at a discounted rate. But this would be against market expectation and the discount is to be expected in a bear market environment.

The Long/Short ratio at Bitfinex has crept higher in contrast to the futures movement, and is now up at 1.18, which has room to manoeuvre higher towards where it usually tops out around 1.5 if there is a break to the upside.

The longs and shorts total open interest at Bitfinex is down to 44k BTC – down from nearly double that in Dec-2019. This implies that there are speculators awaiting the bigger move to commence before taking on any risk in the market, which further supports the idea the next move will be a sharp one.

Overall, bitcoin price remains locked in a bear market and is grinding on upwards in an encouraging fashion. But the bulls must take control of the market in the final week of March as the 20 week moving average continues to suppress the price.

Trade Bitcoin (BTC), Litecoin (LTC) and other cryptocurrencies on online Bitcoin forex broker platform evolve.markets

To get receive updates for the writer you can follow on Twitter (@filbfilb) and TradingView.

The views and opinions of the writer should not be misconstrued as financial advice.  For disclosure, the writer holds Bitcoin at the time of writing.


Images courtesy of Shutterstock, Tradingview.com

Share
Pro 09

Bitcoin Price Analysis: BTC Bounces But Bears Still in Control

Bitcoin price just pulled off a nice 10% bounce with the next level of resistance at $3,700. Let’s take a look at what can happen next?


Bitcoin Price: Market Overview

Bitcoin price 00 dropped to a new yearly low at $3,210 and the overall market cap now rests at $110.6 Billion. Clearly, bears are still running the show for BTC and the SEC’s  final postponement of a Bitcoin exchange-traded fund decision didn’t seem to help.

Crypto-fanatics will now need to wait until January 24th for the launch of Bakkt and February 26th for a final approval or denial of a Bitcoin ETF from the SEC. If the cryptocurrency markets’ trend reversal is dependent upon either of these events then we’ve got a long way to drop waiting on the unpredictable outcomes of each of these events.

4-HR Chart

Bitcoin 00 broke below the $3,550 and $3,400 supports and the cryptocurrency will likely mean that $3,700 will post a stiff resistance to overcome. However, at press time, BTC price has managed to break above the $3,600 mark and now looks poised to test $3,700.

The bounce from $3,210 to $3,615 was pleasant and seems to have caused shorts to cover, but bulls couldn’t muster enough follow through to maintain the move and BTC’s failure to cross above any of the overhead exponential moving averages show bears are still running the show.

This is also backed up by the extremely high number of shorts on BTC/USD and the fact that they snapped right back into place after yesterday’s bounce.

BTC Shorts

After taking a glance at the daily and weekly RSI, Stoch, and MACD there’s not much positive to say about BTC short-term future. Perhaps the silver lining of all this will be that the bears are uber-confident right now and an all-time high amount of shorts can be forced to cover (like yesterday) when Bitcoin pulls off a 10% bounce.

In the past, Bitcoin has shown a propensity for weighty 20%+ rallies. A strong upside move would force shorts to cover and provide rapid gains for those trading BTC at the current range.

Daily RSI / Stoch / MACD

Weekly RSI / Stoch / MACD

Monthly Chart

Now for a dose of reality. If bears don’t let up, BTC can drop to 3,000, $2,545, and $1,400.

Safe trading friends and please remember to always use a stop loss. More cautious traders might want to wait until Q2 and Q3 of 2019 in hopes of a trend reversal.

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for analysis are provided by TradingView.]

Where do you think Bitcoin will go over the short-term? Share your thoughts in the comments below!


Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase.

Share
Lis 19

Bitcoin Price Analysis: Will $5k Hold or Are Bulls Being Led to Slaughter?

Bitcoin price (BTC/USD) had a dire week, breaking down last Wednesday from its 2018 consolidation reaching weekly lows of $5200. 


This week started no better with new lows being found after a further selloff at around $5050. Here we take a look at some of the immediate levels trades and investors alike worth paying attention to.

Bitcoin Price: Daily Chart

Bitcoin‘s resilience sustaining prices around $5500, gave up on Monday as the wider trading environment kicked off the week, with markets pushing BTC price 00 down to test $5000.

As the market attempts to adjust to the breakdown, many are trying to work out where the bottom may be. Here we look at a few of the scenarios being contemplated by investors and traders alike.

Weekly Chart

The lows of August – 2015 August 2017 uptrend converges with the lows of the 2018 downtrend around $4400-4800.  There is a distinct lack of historically traded volume between $4800 and $5500, which may explain why the market is currently falling through the current price range with minimal resistance.

Traders may look to this price range for a bounce, marking a 75% discount from December 2017 prices and a psychological level for both buyers and short covering.

A break and close above previous support at $6,100 would signify some confirmation of a longer term bottom.

2015 Bottom

The 2015 bottom was found at the top of the 2012-2013 trend.  If the same is applied to 2019 it again suggests $4800 region may be a significant level of support.

The most bullish scenario that can be presented is that this down move is being induced by a large player tempting sell volume to the market, which was lacking around $6,000, in an attempt to make a large, longer-term buy and hold position.

This kind of trading is known as a fake out trap to run stops and create liquidity to build such a large opposing position, but it really the only hope short-term players have in this market resuming an uptrend.

$3k – A Comparison to 2015

Looking at 2015 the bottom was found resting alongside the 200MA, currently trending towards $3200, which is where the bottom of the volume range currently resides.

This level is where the market last witnessed significant volume, bouncing the market back to $4350 within two weeks.

It is likely that a number of market participants who took profits from above this level, or from those that sold here historically and had to endure the run up to 20k will happily re-enter the market on an 85% retracement

Bitcoin Cash Hashing War

Hashing power has been diverted from the BTC network to provide support to the Bitcoin Cash ‘hash war,’ which goes some way to undermine the network security for Bitcoin.

Game theory in Economics and as applied here, works on the basis that individuals are incentivized with their resources to do what is best for themselves and the group, which in this case would be to mine the more profitable Bitcoin chain, however, there is currently an uneconomical war being conducted meaning that the marginal profitability from mining is being ignored in the quest for dominance over the BCH network.

Its unclear how this war of attrition using SHA 256 resources is directly impacting Bitcoin price, but it would be reasonable to assume that it is not positive to the outsiders looking in and until there is liquidity to dump the opposing chains coins, they will need to use their Bitcoin to provide working capital to cover the marginal cost of production.

The probable outcome is that the losing miners will revert their hash and capital back to the BTC network once a winner has been found.

In Summary, Bitcoin 00 looks likely to continue its downward momentum from here, testing the low volume price ranges, with the closest one closing around $4800, however, the strength of the hands of the Hodlers will be tested.

A large engulfing candle supported by significant volume is the only thing which the bulls want to order from the menu, but where that will occur remains to be seen.

Does Bitcoin price suggest it is now a buyers market? Where is the bottom? Let us know your thoughts in the comments below.


[Disclaimer:  The views expressed in this article are the personal opinion of the author and do not reflect the views of Bitcoinist. The information in the article should not be taken as financial advice.]

To get receive updates for the writer you can follow on Twitter (@filbfilb) and TradingView. Images courtesy of Tradingview, Shutterstock.

Share
Zář 16

Bitcoin Price Analysis: Are Oversold Bounces Leading the Market Higher?

Bitcoin is making a slow and steady recovery toward $7,000. Has bearish market sentiment alleviated? Or, are the current gains simply the result of a market-wide oversold bounce?


On Thursday, BTC broke through the $6,450 resistance and proceeded to reach a weekly high just shy of $6,600. This was prior to a  brief pullback to $6,400. The weekly chart shows Bitcoin (BTC) 00 about to set a higher low. After last week’s break from this pattern, a few more weeks of higher lows will be required to determine if a trend change is in order.

4-Hour Chart

Since pulling back from the weekly high ($6,597), BTC has been continuously rejected near the 200-MA ($6,612). Up til this morning, a pattern of lower highs continued as the RSI and Stoch began to descend from overbought territory.

Since pulling back from the weekly high ($6,597), BTC has been continuously rejected near the 200-MA ($6,612). Up until this morning, a pattern of lower highs continued as the RSI and Stoch began to descend from overbought territory.

These frequent rejections at $6,530 are a result of a lack of bull volume on each attempt and if BTC were to fall below $6,414 (20-MA) and $6,358 (50-MA and most recent low) then a revisit to $6,270 could occur.

BTC needs to overcome yesterday’s high and proceed to take out the 200-MA, which is also aligned with the 38.2% Fib retracement level at $6,623.

A more convincing move would be for BTC to gain to the midway point ($6,780) of last week’s drop from $7,400 as this would place BTC above the 100-MA and the 38.2% Fib retracement level.

Daily Chart

BTC did manage to close above the 10-day MA and while the overhead moving averages are still angled downward they have begun to flatten.

BTC did manage to close above the 10-day MA and while the overhead moving averages are still angled downward they have begun to flatten. The RSI is climbing mid-channel through a neutral zone and the Stoch is lifting from near oversold territory.

Yesterday’s doji candle shows a degree of indecision. Fortunately BTC went on to post a higher low not shown on chart.

1-Hour Chart

The 1-hour chart shows BTC repeatedly pulling back from $6,570 and $6,550 and each pullback has dropped BTC price from the upper arm to the mid-channel.

The 1-hour chart shows BTC repeatedly pulling back from $6,570 and $6,550. Each pullback has dropped BTC price from the upper arm to the mid-channel. Then similarly below the 10-MA of the Bollinger band (set at 10, 1, 9).

The 20 and 50-MA should serve as short-term supports. However, the move into the lower BB arm and the sharply dropping Stoch and RSI mean BTC could pullback slightly as it continues to consolidate throughout the day.

Projections

BTC is well situated for short-term gains but remains biased toward bears given the lack of follow-through from bulls after frequent rejections and positioning of the moving averages on the daily and 4-hour chart.

BTC 00 needs to overcome the 200-MA ($6,612) and there is resistance at $6,710 where the 100-MA is situated.

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by BITFINEX. The charts for analysis are provided by TradingView.]

Where do you think Bitcoin price will go this weekend? Let us know in the comments below! 


Images courtesy of Shutterstock, Tradingview.com

Share
Zář 12

Bitcoin Price Analysis: How Long Will $6000 Support Hold?

Bears remain fully in control of Bitcoin price, yet somehow, the $6,000 support is holding…for now.


Bitcoin Price: 4-Hour Chart

After posting a daily high at $6,460, bitcoin price fell below the wedge formation and constant rejections at the 20-MA have kept BTC 00 in the pattern of lower lows.

Eventually, a bear flag formed and BTC continues to lose the hourly uptrend after every bull break so traders should either hold their powder or place tight stops in order to avoid being trapped by fake outs.

The drop below the ascending trendline was the $6,117 support but the overall scenario remains overwhelmingly bearish.

Granted the bears do have the ball and the 4-hour chart shows higher lows being set throughout the day and a bullish divergence on the RSI does inspire a smattering of hope. However, earlier today the 50-MA dropped below the 200-MA and all of the other short-term moving averages are crossed below the long-term MAs and BTC trades close to 2018 lows.

BTC needs to move above the daily high at $6,460 (slightly above the 23.6% Fib retracement) and the 200-MA at $6,573 which is an area that will likely provide stiff resistance.

While more downside is likely, BTC does have support at $6,180, $6,122, $6,000 and $5,900.

BTC appears to be consolidating into a tighter range but still struggles to move above the 20-MA. The bullish divergence in the RSI throws mixed signals as the Bollinger bands constrict, but low buy volume and the consistent failure by BTC to move above the daily high (red line) suggest a move to the downside.

Of course, we would love to see otherwise but the recent bearish cross of the 50-MA below the 200-MA make the possibility of such an outcome less likely.

Daily Chart

Looking Ahead

BTC 00 appears to be on a path to $6,000 unless the technical setup changes or a bullish media story can shift sentiment. One can only hope that a move below $6,000 will lure buyers and produce a nice bounce or better yet, a trend reversal but at this point, this is nothing more than wishful thinking.

A bullish divergence can be seen in the 4-hour RSI but all other indicators are bearish so try and curb your enthusiasm.

BTC needs to move above the daily high at $6,460 (slightly above the 23.6% Fib retracement) and the 200-MA at $6,573 in order to garner buyers’ interest.

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by BITFINEX. The charts for analysis are provided by TradingView.]

Where do you think Bitcoin price will go this weekend? Let us know in the comments below! 


Images courtesy of Shutterstock, Tradingview.com

Share
Zář 07

Bitcoin Price Analysis: Picking Up the Pieces

Let’s be honest, unless you’re short, yesterday was catastrophic. Bitcoin was just shy of breaking $7,500 and taking the rally up another leg then unexpectedly plunged 13% and now we’re below $7k, again…


Bitcoin Price Market Overview

Prior to the dump, Bitcoin price BTC/USD 00 was experiencing continued rejections as it approached $7,400 but who would have known the pullback would be this severe?

Ideally, after a 27%+ run, consistent rejections signal that bulls are running out of steam and a pullback to say $7,300 – $7,100 would be sensible as lower highs and rejections function as a profit taking signal for some.

On deeper reflection, there were some external signals that something was amuck. A wallet address rumored to be connected to the Silk Road mysteriously awoke after a nearly 4-and-a-half year long nap to quietly distribute 11,114 BTC to Bitfinex, 4,421 BTC to Binance and 210 BTC to BitMEX.

Reddit user Sick_Silk believes that this Silk Road connected wallet contains roughly $1 billion worth of Bitcoin, Bitcoin Cash and funds from a number of Bitcoin forks.

Add to this the occurrence of a $70 million short position being initiated last week and Tether’s recent repeat of a $100 million dollar USDT infusion to Bitfinex, and things certainly begin to look a bit funky.

So as Q-Tip would say, “What’s the scenario?”

Daily Chart

BTC was on the verge of escaping the long-term descending triangle at $7,500 and now trades below the 100-MA and 55-EMA. Fortunately, $6,300 – $6,200 have held and a dip below $6,000 seems less likely as the Stoch is already deeply oversold and a corrective rally to $6,650 could occur. Had BTC managed to climb above the descending trendline, a rally toward $8,300 might have occurred.

4-Hour Chart

BTC formed a double bottom at $6,308 and a previous support at $6,537 now serves as resistance. At the moment it appears that $6,500 is standing as a psychological resistance. We can expect resistance at the 20-MA and the 200-MA which nearly aligns with the 38.2% Fib retracement level. Furthermore, the 20-MA is en route to crossing below the 100-MA at the 50% Fib retracement level ($6,857).

Basically, barring some fantastic news like Coinbase purportedly working with BlackRock to develop a Bitcoin ETF or an unexpected spike in bull volume that triggers a $1,000 short-squeeze, we can expect BTC to encounter resistance at the overhead moving averages and previous supports (dotted lines) will likely function as resistance.

It is also likely that BTC shorts have added to their positions as BTC rejects at $6,500. In other words, the road to recovery could be rather challenging for BTC.

BTC-USD-SHORTS: Daily Chart

Looking Ahead

In the absence of market-moving news, BTC is likely to follow the pre-rally pattern of rejecting at the overhead moving averages on the 4-hour chart. Currently, the Stoch and RSI remain in oversold territory and investors should watch the weekly chart at the last higher low is $7,429.

Bitcoin has now given up 2.5 weeks worth of gains and is unlikely to close above $7,429, which makes the possibility of a bear break more likely than the inverse scenario.

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by BITFINEX. The charts for analysis are provided by TradingView.]

Where do you think Bitcoin price will go this weekend? Let us know in the comments below! 


Images courtesy of Shutterstock, Tradingview.com

Share
Zář 04

Bitcoin Price Analysis: Bull Breakout or Bearish Reversal?

Bitcoin is working hard to overtake the $7,300 mark. However, the holding aspect that has proven problematic.


Bitcoin Price Market Overview

Bitcoin continues to reject at $7,300 even though it has staged a few inspiring pops above the $7,300 resistance. After a nearly 27% gain over the past two weeks, cooling off and consolidation isare expected. The pattern of higher lows has consistently been re-established after each pullback from $7,300. Add to this the fact that there is a range of other positive signs which show BTC is well situated at the moment.

4-Hour Chart

Add to this the fact that there is a range of other positive signs which show BTC is well situated at the moment.

The weekly MACD (not pictured here) shows a bullish cross appearing on August 26th, while the 20-MA rises above all the longer term moving averages on the 4hr chart. The 100-MA recently crossed above the 200-MA — simply following the movement of the 5 and 10-hour EMA along with the ups and downs of the Stoch and RSI have provided easy trading opportunities for day traders.

Bulls have shown some signs of exhaustion as a closer look at the rejected pops above $7,300 shows that a series of lower highs, as well as the occasional higher volume spike above $7,320, is quickly rejected. This plunges BTC to the support zone around $7,270 to $7,250.

BTC now trades outside of the ascending channel. As shown by #1 and #2 on the 4-hour chart, each rejection at or above $7,300 has seen BTC return to $7,255 and $7,234. These have proven to be fairly reliable supports, but a move below $7,255 places BTC. This lies outside of the ascending channel, and $7,234 below the second ascending trendline.

Looking Ahead

In the event of a pullback, BTC has consistently found support at $7,250 and $7,332. $7,200 – $7,190 follow close by. 

The outlook for BTC remains positive. Still, the cryptocurrency needs to quickly surpass, and maintain control over, the $7,300 resistance. This would place BTC back into the ascending channel.

Trade sensibly!

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by BITFINEX. The charts for analysis are provided by TradingView.]

Where do you think Bitcoin price will go this weekend? Let us know in the comments below! 


Images courtesy of Shutterstock, Tradingview.com.

Share
Srp 29

Bitcoin Price Analysis: Is This Yet Another Sucker’s Rally?

Bitcoin price has been on a rather pleasant run as of late and a move above the ascending channel would make this unexpected treat a little bit sweeter as a path towards $7,500 and above could open up.


Bitcoin Price Market Overview

This current rally has everyone feeling all bullish lately and even a small group of select altcoins are feeling the love. Question is, did BTC actually reach a bottom and reverse or is this just another one of those $1,000 green candle teases that eventually leads to a sharp reversal and revisit to prices below $6,000?

Let’s have a quick look at the charts to see where BTC 00 might go.

1-Hour Chart

Bitcoin price is confidently bullish for the short-term, though a move above the ascending trendline grows more urgent in order for BTC to maintain its current pace. BTC has pulled back from its daily high at $7,127 and appears to be consolidating from $7,000 to $7,100 which was to be expected as the RSI and Stoch spent most of the day bouncing around in overbought territory.

The 5-hour exponential moving average (EMA) has crossed below the 10-EMA and a drop below $7,000 would not be surprising as a mild pullback after rapid gains is typical.

In the event of a pullback, BTC is likely to rebound back to today’s range as the cryptocurrency remains in the ascending channel with the longer term moving average below as support. Furthermore, the RSI and Stoch have room to fall and accommodate a pullback to $6,875 before reversing course.

4-Hour Chart

The recent upside move brought BTC 00 above the 200-day MA and the 20-MA is on the verge of crossing above the 200 MA while the 50 and 100-day MA have already crossed. Despite a slight pullback from today’s high ($7,127) BTC continues to consolidate within the ascending channel and while volume has tapered off BTC is well situated.

While the pattern of higher lows has fragmented, it is preserved on the daily chart and will remain so as long as the BTC stays above 6,568.

Looking Ahead

Barring a drop below the ascending trendline at $6,864, BTC could extend to the top of ascending trendline at $7,350 over the short-term.

A sharper pullback to $6,875 would not be surprising and bulls are likely to buy the dip in anticipation of a quick bounce back above $7,000.

BTC will encounter resistance at $7,128, $7,165 and $7,490. In the event of a reversal, BTC will find support at $6,877, $6,711 and $6,566. BTC has spent the day bouncing off softer supports at $7,000, $7,030 and $7,050.

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by BITFINEX. The charts for analysis are provided by TradingView.]

Where do you think Bitcoin price will go? Let us know in the comments below! 


Images courtesy of Shutterstock, Tradingview.com.

Share