Zář 07

Binance Coin Price Analysis: BNB Could Attempt Reversal To $26

Binance coin has created three lower lows between now and June as price action loses close to 50% of its value. Further downside is expected, however, signs of a reversal could be playing out.


BNB/USD 1 Hour Analysis

On the 1 hour chart for BNB/USDT, we can see at the end of August price levels crashed through $25 support as mentioned in my previous BNB analysis, since then price levels have bottomed around $21 and market price action creates an ascending channel. Both the 50 MA and 200 EMA are touching for the first time within the 1 hour visible chart range. RSI has also created three higher highs.

Volume has been gradually increasing since the 30th of August just before price action bottomed at $21. Volume levels will need to keep increasing to sustain the newly developed ascending channel which could result in Binance Coin testing breakout resistance at $24.5.

It’s likely BNB price levels will trade within the ascending channel over the next week, then create a new low. It’s important not to enter into a position until either price levels have breached the breakout point at $24.5, or clearly breaks down through the ascending channel support if you’re looking to short.


BNB/USD 8 Hour Analysis

On the 8 hour chart for BNB/USDT, we can see a clear falling wedge has formed. Stemming from the highs at $39 down to the current third lower low at $21. Falling wedges are inherently bullish, especially when forming off the back of an explosive move to the upside. Further downside within the falling wedge is likely. Key support to look out for below the current market price is $19.8.

Volume has begun to rise over the last few days in comparison to volume levels seen throughout August. In order for price levels to attempt a bullish breakout through the falling wedge, volume levels must return to levels seen in May through to July. Currently, the market price is trading right below the 0.236 Fibonacci level which is also at the same level whereby price action would break out through the falling wedge. Bullish breakout is only confirmed once both of these levels have been surpassed.

RSI turned oversold towards the end of August and now appears to be forming bullish momentum which aligns nicely with the ascending channel on the 1-hour chart.  However, there are almost no indications that this uptrend will be sustainable.

Do you think Binance Coin will break out through the falling wedge in a bullish fashion over the coming weeks? Please leave your thoughts in the comments below!


Images via Bitcoinist Image Library, BNB/USDT charts by TradingView

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Srp 28

Analyst Bullish After Looking At Bitcoin Trading Order Books

Bitcoin’s recent price performance has provided little inspiration lately. An ongoing range-bound bounce between the high $9k and mid-$10k price levels has not given any clear direction of future movements. Some analysts expect a breakdown to a new lower low while others remain bullish.


Bitcoin Order Book Looks Bullish

From its Monday high which touched $10,600, BTC has been on the back foot as the week as progressed. The slow slip down to today’s prices of around $10,150 has led many to predict a further fall back into four figures again. For the past day or so, bitcoin price has been oscillating between $10,200 and $10,000 in an ever-tightening channel according to Tradingview.com.

bitcoin

BTC price 1-hour chart – Tradingview.com

A pennant appears to have formed on this hourly time frame which is likely to lead to a breakout. Crypto analyst and trader Jacob Canfield is bullish in the short term, predicting an upside breakout within the next few hours. This extrapolation has been derived from looking at the order book which he claims is stacked to the upside.

“#Bitcoin trading has been like watching paint dry.
Paint drying bitcoin price action should probably be ending in about 4 hours or so.
I expect a resolution of this to come soon.
I’m personally leaning to the bullish side with the way the order books are stacked.”

The short time-framed pennant is likely to reach its conclusion later today or early tomorrow. Over the past week, the lows have been higher which could be another sign of a bullish movement though not all are convinced.

Other traders are a little more indecisive on the next move but all are in agreement that something is about to happen soon. Price action trader ‘TheCryptoCactus’ pointed out;

“There is no reason that a move either way should surprise you and you should have had plenty of time to prepare for both scenarios. Chart looks daily bullish but I’m expecting wick down to trap shorts.”

While ‘WelsonTrader’, who has also identified the wedge formation, has gone for the bearish option predicting a slide to a new lower low back in the $8k zone before any sign of a recovery.

“When #Bitcoin inevitably breaks down from the wedge we’re in, I’m expecting $BTC to drop over 20%+ from the current price, and a total of 40%~”

Either way, a larger move is likely before the week is out but it remains to be seen whether bitcoin will stay within its trading range or drop to a new low confirming the correction is still in play.

Will BTC price drop to $8k before reclaiming $11k? Add your predictions in the comments below.


Images via Bitcoinist Image Library, BTC/USD charts by TradingView, Twitter: @JacobCanfield, @WelsonTrader

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Srp 17

3 Reasons Why Bitcoin Price Hasn’t Returned to $13,000

Despite the promises of crypto analysts and institutions like Goldman Sachs, Bitcoin price continues to hover around low 5 figures. What’s going on?


After struggling to hold above the $11,000 point earlier this week, Bitcoin price, at last, succumbed to selling pressure and dropped below $10,000 for the second time in three weeks. Prior to the drop, numerous analysts predicted that $10k would serve as a reliable bounce point as the price represents important psychological support.

Clearly, this was not the case and even after making a strong upside move from $9,500 to $10,450, Bitcoin still struggles to stay above $10,100. 

Let’s take a look at what is keeping the king of cryptocurrencies down. 

Dovey Wan says Ponzi Scheme is Crashing the Crypto Market

On July 14 Primitive Crypto founding partner Dovey Wan attributed the sharp sector-wide correction to bulk Bitcoin sells from PlusToken, a Chinese Ponzi scheme. The scheme managed to accrue 200,000 Bitcoin and more than 800,000 Ethereum from naive investors in China.

According to Wan, not every member of the PlusToken team has been arrested yet and data from cybersecurity auditing firm Peckshield shows that recently more than 1,000 Bitcoin was transferred to Huobi and Bittrex from PlusToken accounts. 

Wan is convinced that the scammers are covertly shifting their funds “into small batches into exchanges, like 50 to 100 Bitcoin per batch.”  Wan also claimed that she recently stumbled across a chat where Chinese traders were saying that someone had been dumping 100 BTC non-stop on Binance.

If true, it is entirely possible that large back to back sales of Bitcoin could affect spot rate across exchanges but this sole event is probably not fully responsible for Bitcoin’s malaise

Mind the CME Gap 

The CME Bitcoin Futures gap is another popular topic amongst Bitcoin traders and many cite the existence of the gap as a reason why Bitcoin continues to drop below $10,000. A glance at a Bitcoin daily chart shows an $870 gap between $7,177 and $8,050.

The gap is simply the outcome of Bitcoin price moving over the weekend while the CME Futures are closed and the space denotes the difference between the previous close and the new opening price once the market reopens.

The gap is a cause for concern as traders set the price as a target that must be filled at some point, typically when an asset corrects and retraces to supports in the vicinity of the gap.

Many traders believe that Bitcoin must revisit this $7,100 to $8,500 range to truly correct before resuming its strong bullish trend to a new all-time 2019 high. 

Bitcoin Accumulation Before Surge on Recession Fears 

An assortment of crypto analysts have posted charts suggesting that Bitcoin has entered a lengthy consolidation phase and will continue to be pinned between $9,000 to $14,000 until more excitement and momentum build up over the 2020 halving event. 

Earlier this week as the stock market took a horrific tumble over weakening macroeconomic fundamentals, fears of a recession sprang up as an economist focused on an inverted yield curve on treasury bonds.

This week the slope on US Treasury bonds became inverted and for economists and market analysts, this is typically an indicator that a recession could be on the way.

At the same time, Gold has continued to rise in price and many investors believe that Bitcoin is a similar store of value and hedge against volatility.

If the US and other countries truly are on the verge of a recession, one would increase inflow into Bitcoin and a significant increase in its market cap and value.

At the time of writing, Bitcoin is steadily dropping back towards $10,000 and $9,800 is the most immediate support level. 

Do you think Bitcoin price will dip below $10,000 over the weekend? Share your thoughts in the comments below! 


Images from Bitcoinist Image Library, Twitter: @DoveyWan, BTC/USD charts by TradingView

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Srp 13

Analyst Looks to Blockchain Data to Explain Why Bitcoin is Still ‘Bullish’

Market analyst Jesus Rodriguez believes that investors should consider blockchain datasets when devising their Bitcoin investment plans.


Blockchain data helps with crypto investing

On August 12, Invector Labs chief scientist, Jesus Rodriguez, took to Hackernoon and made his case as to why he believes Bitcoin remains bullish despite correcting from $13,800. At the time of writing, Bitcoin continues to struggle to overcome $12,000 and technical analysis suggest the digital asset could drop to $10,800 – $10,600 over the short-term. 

According to Rodriguez, the majority of speculation surrounding Bitcoin price has been focused on macroeconomic factors such as the US / China trade-war, global monetary easing and central bank policies that are leading to the devaluation of fiat currencies. 

Last week, President Trump introduced additional tariffs on Chinese goods and the Dow Industrial Average reacted by dropping nearly 800 points. At the same time, volatility has increased across major world indices and China placed the cherry on top of this disastrous sundae by devaluing their currency. 

Meanwhile, Gold and Bitcoin increased in value as investors viewed the assets as a store-of-value and hedge against volatility. 

What does blockchain say about the Bitcoin rally?

While these are incredibly relevant factors that are clearly impacting Bitcoin price, Rodriguez suggests that investors take a deeper look beyond the macroeconomic perspective and analyze blockchain data. 

Looking closer at blockchain data could uncover some interesting details and patterns that shed light on the recent Bitcoin rally. 

According to IntoTheBlock’s blockchain-based data sets, nearly 90% of Bitcoin investors are “in the money”. There are also nearly one million addresses with positions acquired near Bitcoin’s current price and Rodriguez argues that these investors will help “influence the trading activity in the next few days.”

IntoTheBlock’s Break-Even analysis primarily focuses on realized gains and the indicator shows that Bitcoin’s next strong support/resistance is near $10,400. Rodriguez also pointed out that as BTC price rose, so did the number of active addresses and this is a sign of growing strength within the Bitcoin network. 

Rodriguez also attempted to poke a hole in the default explanation that China’s yuan devaluation led to Asian investors taking shelter in Bitcoin. 

Macro is micro when it comes to analyzing Bitcoin price action

Even more interesting is the fact that the majority of ‘new’ Bitcoin investors accumulated the digital asset before the current price rally began.

Essentially Rodriguez is saying that the current macroeconomic factors are reflective of long-term, structural challenges that have long existed in various economics and are just now showing themselves. 

This does not mean that macroeconomic challenges are directly responsible for the majority of BTC price action. In fact, macro-economic factors are short-term price indicators for Bitcoin price action and should not be fully relied upon to predict price movement. 

Roderiguez advises that investors also incorporate analysis of blockchain data like on-chain activity, network hash-rate, volume of large institutional and retail transaction, new address origination and the fluctuations in Bitcoin address openings, closing and transfers at various price points. 

By doing this, investors attain a more comprehensive view of the whole market and are likely to make wiser investment decisions. 

Do you think the current Bitcoin rally is primarily driven by macroeconomic factors? Share your thoughts in the comments below! 


Images from Shutterstock

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Srp 10

Ethereum Price Analysis: Bears Eye Pullback To $190 Support

Ethereum price recently broke out of a period of consolidation as mentioned in my previous analysis on ETH, completing an asymmetrical triangle in favors of the bulls but has since begun a pullback breaking the short-term support. Bears now eye $190 support around the visible range low.


Ethereum Price 1-Hour Analysis
ethusd60

On the 1 hour chart for ETH/USD, we can see how price action progressed after the breakout. Price levels tested $240 resistance and failed to gain on the 6th of August resulting in a rejection causing a pull-back to break the short-term support around $217. Since then price levels have continued to drop and looks poised to re-test the visible range low at $189 just below the 0.382 Fibonacci level.

It’s important to note that volume remains reasonably low on this pull-back and will need to see a drastic increase in selling momentum to cause a crash through $189 support making it likely that a bounce could happen as market price tests this key support price level. RSI just hovering above 20.00 being oversold indicates selling momentum has control over market price.


Ethereum Price 8-Hour Analysis

ethusd8h

On the 8 Hour chart for ETH/USD, we can see where the support at $189 originates from being the local top throughout the middle of April just before price levels broke out and swiftly tested $282 resistance thereafter. RSI has yet to hit oversold zone but appears to be clearly heading in that trajectory, by the time the market price which is currently $204 tests support at $189 it’s likely RSI will be fully oversold presenting a good reason to consider re-entering at this level.

200 EMA can be seen acting as resistance at the local top mentioned on the 6th of August at $240 meaning the recent breakout was a failure to gain aka fakeout as the necessary volume needed for price levels to sustain a new short-term bullish uptrend didn’t arrive. The volume appears to be almost flatlining now in comparison to volume seen throughout April, May, and even June. POC (Point of Control) sits at $168 and will be the next key support level to look out for if $189 breaks.

15 SMMA and 50 MA can be seen just about to cross down over each-other at the recent support break-down point at $218. This could signal much further downside to come so it’s important to practice effective risk management when taking any trades on ETH/USD over the coming days and weeks.

Do you think the volume necessary to propel ETH/USD higher will arrive in the coming days? Please leave your thoughts in the comments below!


Images via Bitcoinist Image Library, ETH/USD charts by TradingView 

This article is strictly for educational purposes and should not be construed as financial advice.

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Čvc 30

Bitcoin Will Drop To $4000 In ‘Wildcard Move’ Before Rally: Analyst

Popular YouTube securities and crypto analyst, Alessio Rastani has predicted that Bitcoin will drop far below the 21-day EMA before rallying to a new all-time high in 2020.


Bulls could be Walking into a Massive Trap

Alessio Rastani, a popular securities trader and crypto analyst, believes that confirmation bias is misleading crypto-investors to the extent that the majority of traders will in absolute disbelief when Bitcoin drops below $6,000.

The digital asset is slowly creeping toward the 21-EMA near $8,000 which could serve as a strong support or even a bounce point as Bitcoin is likely to be deeply oversold by that point. The current daily chart shows Bitcoin buy and sell volume in a steady decline, even though sell volume has superseded buy volume as of late. 

According to Rastani, the Pulse Momentum indicator corresponds with Bitcoin’s volume decline. Rastani explained that momentum had steadily increased since April when Bitcoin began its monster parabolic rally but since topping out at $13,780, the indicator is has flipped from green to red and momentum is on the decline. 

Rastani is afraid that investor’s confirmation bias is interfering with investors ability to accurately view the current market structure and he cites the numerous articles from analysts suggesting that an impending golden cross of Bitcoin’s exponential moving averages are proof that the rally will restart shortly. 

Rastani explained that: 

The majority of Bitcoin article writers (and video makers) seem to be very bullish.

Lemmings are Running the Bitcoin Price Show

Currently, the general consensus amongst traders is that Bitcoin will correct to the $8,500 – $8,000 zone to enter a lengthy spell of consolidation before commencing a new parabolic rally toward $20,000 to $30,000 as the Bitcoin halving event approaches.

According to this line of thinking, Bitcoin completed wave 1 as it topped out at $13,800 and is currently in wave 2, which bring Bitcoin to the $8,000 support. Wave 3 is supposed to be a lengthier strong upside move that will take Bitcoin to $20,000 to $39,000. Wave 4 brings the oversold digital asset back to $21,000 and wave sees Bitcoin top out at $55,000 in late 2020. 

Rastani advises that investors consider the various contrarian outcomes for Bitcoin’s price action. Rastani posits that Bitcoin’s current correction could in the process of completing a B wave correction.

What Would Happen In A Bearish Scenario

What Would Happen In A Bearish Scenario

The upcoming C wave could see Bitcoin correct as far as $1,800 to $1,600 before reversing course and rallying to $14,000 to $20,000. While this outcome may be unlikely, Rastani is troubled that analysts are ignoring it as a possibility due to overwhelming confirmation bias. 

A Third Situation

Rastani personally thinks that the most probable outcome is that over the coming days or weeks Bitcoin will strongly bounce off the 21 EMA at $7,500 to $8,000 after forming a support near that zone. What comes into question is whether or not the bounce from the $8,000 support will play out as most investors expect.

Bitcoin Price Could Bounce Off Upwards From $7500-8000

Bitcoin Price Could Bounce-Off Upwards From $7500-8000

Rastani warns that close below the 21 EMA would open the doors to bearish price action and he cautions that the bounce from $8,000 might fizzle out around $10,000 to $11,000 instead of the sky-high valuations that many analysts are forecasting. 

The Bitcoin Price Wildcard

Before wrapping up his analysis, Rastani proposed a wildcard scenario which would see Bitcoin bounce strongly off $8,000 to $11,000 – $12,000 before sharply reversing all the way down to $6,500 to $4,500 to complete an ABC corrective move.

Price Could Fall To $4500-6000 In 'Wildcard Scenario'

Price Could Fall To $4500-6000 In ‘Wildcard Scenario’

Rastani predicts that Bitcoin will then reverse trend around $4,000 – $6,500 to commence a major move up toward a new all-time high in mid-2020.  

Regardless of whether one is a Bitcoin bull or bear, it is prudent to consider all possible possibilities when investing. Rastani’s proposals, while extreme, do encourage contrarian thinking which serves to balance investors thought process and combat confirmation bias.

If there’s one thing that is certain, Bitcoin always has a wildcard up its sleeve. 

Do you think Rastani makes an accurate prediction of Bitcoin’s future price action? Share your thoughts in the comments below! 


Image via Shutterstock, YouTube: Alessio Rastani

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Čvc 25

Bitcoin Price Analysis: Bulls Win Another Breakout

Bitcoin bulls have won yet another descending channel breakout, causing short-term price action to bounce off a key support around $9,500 and push price levels back to 5 digits. 


Bitcoin Monthly Chart
XBT1M

On the monthly XBT/USD, we can see a doji forming on the latest candle as the head sits in the middle of two large wicks. Typically, a Doji can go in any direction and is heavily dependant on the overall trend of the coin. In this case, BTC is still very much bullish so we are assuming an upside continuation will ensue over this time frame. Volume right now are still sustaining levels way above that seen throughout the bull run in 2017 and 2018.

POC (Point of Control) has yet to move up from $6,430 meaning the highest amount of volume or trades exchanged throughout this bullish phase on BTC still remains quite low. This will be a very bullish sign as it shows us high volume is exchanging hands at this level and represents a new critical support level. More information on this key support level can be found in my previous analysis.

Bitcoin Hourly Chart

XBT1H

On the 1 hour XBT/USD chart, we can see the second descending channel break clearly with price action now attempting to create a small bull flag just below the 200EMA. The volume appears to steady with no real jumps during this breakout. This suggests that Bitcoin bears are really struggling to build up momentum inside this time frame.

Maxx Momentum has crossed to the upside painting green in conjunction with this breakout after displaying red throughout the descending channel. POC still remains back at the top of the channel at $10,500 as mentioned in my previous analysis, which will likely as act as a magnet for price action thus making a sensible profit target on this move upwards.

The previous range local high was $9,400 before BTC went on to reach just shy of $14,000 meaning the previous breakout point has already been re-tested for BTC. When a breakout occurs many traders will wait for a pull-back and re-test of the breakout point before entering. BTC has already re-tested the previous breakout point and bounced quite significantly back up to $11,000. From this, we know that support around $9,400 is very strong and will require a lot of selling pressure to break.

Do you think BTC will hit POC at $10,500 over the coming days as a result of this most recent breakout? Please leave your thoughts in the comments below!


Images via Shutterstock, Tradingview

None of the information/ opinions in this article should be construed as financial advice.

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Čvc 18

Did US Congress Send Bitcoin Price Back to Five Figures?

Bitcoin price has made a bit of a comeback over the past few hours to re-touch five figures again. It remains to be seen whether this is the beginning of a wider recovery but many analysts are still of the opinion that a four figure BTC is a giveaway.


Bitcoin price made it back to $10,000 again a few hours ago during Asian trading. The move marks a gain of over 10% from BTC’s intraday low of $9,050 yesterday. At the time of writing bitcoin price had retreated back to 00 where it currently trades, still up on the day consolidating around $9,800.

bitcoin

BTC prices 1-hour chart – Tradingview.com

It remains to be seen whether this revisit of five figures is part of a recovery from that recent dip of whether further losses are on the cards. The overall trend for the week is still down and the last move has been another lower high so more pain could be coming over the weekend.

Many are still of the opinion that anything below $10,000 is a gift. RT’s Max Keiser is still very bullish tweeting this yesterday:

“The next vault over $10,000 will leave that digit in the dust. Like we’ll never see $100 or $1,000 anymore, we’ll never see $10,000 again.”

Yesterday’s Congress hearing may have had an effect on BTC prices with many industry experts stating that it was bullish. Most of the regulatory angst appears to be aimed at Facebook which is a private, profit-driven corporation, now aiming to become the world’s largest digital bank. Binance boss Changpeng ‘CZ’ Zhao couldn’t resist the opportunity to point this out:

“So basically, congressmen are: bullish on bitcoin, just not so hot on Libra. Feeling pitiful for the guys who sold yesterday.”

Bitcoin Still ‘Eating’ Altcoins

According to Tradingview, BTC dominance is still over 68% despite its recent pullback. Yet again the altcoins are struggling to make an impact even though a few of them have pumped double digits today. Trader and analyst, Josh Rager, has observed the discrepancy adding:

“Currently, BTC sits a weekly open and at 68% and want to see this reduce significantly before investing into altcoins. $ETH (the S&P of alts) is sitting at monthly support, it needs to hold and it all lies on Bitcoin’s future price action.”

In a rare move, Ethereum has actually bounced back more than bitcoin today. The 8% move has lifted ETH prices back to around $218 but it remains bearish and could quickly fall back to support at $200. Altcoins will have their day, but at the moment it is nowhere to be seen.

Will bitcoin price climb back over $10k? Add your thoughts below.


Images via Shutterstock, Tradingview, Twitter: @maxkeiser, @cz_binance, @Josh_Rager

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Čvc 12

Bitcoin Price Analysis: Bullish Divergence At $11,500

Bitcoin price hit a peak of $13,000 on the 10th of July just two days ago. Since this price levels have pulled back to POC (Point of Control) around $11,300 as mentioned in my previous bitcoin price analysis. Three descending lows are evident on the 30 Minute time-frame alongside descending volume and ascending RSI which is a clear indication of bullish divergence.


Bitcoin Price 30 Minute Analysis

BTC 30 Min

On the 30-minute bitcoin price analysis chart, we can see clear bullish divergence playing out. Bright as day, we can see highlighted the descending peaks in both price action and volume. In addition to this, RSI (Relative Strength Index) shows clear ascending momentum. These are the three main points to look out for when trying to gauge bullish divergence, this coupled with the fact that market price is trading at POC (Point of Control) around $11,600 begins to paint a very bullish picture for BTC’s short-term price action.

Both the 50MA and 200EMA are sandwiching market price, this is a clear indication of consolidation before a big move. BTC’s volume is at it’s lowest in the last 3 Days and price levels aren’t continuing to dump meaning there’s good support around the current market price.

Provided the bullish divergence plays out as expected, price levels could break July’s monthly high of $13,000 over the coming days. The trend is still very much bullish and bears don’t seem to be gaining much momentum as outlined in yesterday’s bitcoin price analysis on BTC.


Understanding Bullish Divergence

Bullish divergence is simply when the candlesticks create lower lows and your indicators create higher highs. This signals that bearish selling momentum during a pull-back or correction is starting to fade out. Understanding how to spot divergence in the market is a crucial fundamental skill that every crypto trader must learn. Characteristics such as a clear curve in short-term price action as highlighted in my technical analysis above on BTC, and three or two clear descending lows in price action.

Regular Bullish Divergence

  • Reversal of current downtrend
  • Second or third low.
  • Price makes new Lower Low, but the indicator makes Higher Low.
  • Trend changes to the upside.

Traders in both traditional and emerging financial markets will grasp a firm understanding of how to spot divergence. Given the volatile nature of cryptocurrencies, being able to predict future price action based on the simple rules above can provide assistance in developing your edge in the market, and in becoming a profitable trader. Below you can see an example of bullish divergence playing out in the Forex markets.

Bullish Divergence

Moving Average Convergence Divergence

Do you utilize divergence as a part of your trading strategy? Let us know in the comments below!


Images via Shutterstock, Tradingview

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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

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