Bitcoin is on a 656 hour monthly cycle (27.33 days) see the chart linked below for an explanation. 24 Sidereal EMA was support before capitulation and is now resistance.
Anyone who thinks the crypto market is going to come back down hard simply needs to look at the S&P 500 chart after momentum reversal. When momentum reverses this hard you do not want to be short for long, the trend is your friend and all that.
It is folks shorting with leverage and getting stopped out that fuels the initial parabolic move, it continues as more and more traders get in line with the new trend. It can take months or years to run out of steam and for the momentum to change direction again.
Fundamentals are also in the favor of Bitcoin . As the bear market dragged on, transaction volume continued to tick higher. Segwit transactions are the majority of transactions now and they are cheaper and have effectively quadrupled the capacity of the blocks. Lightning is in advanced stages of consumer product prototyping. Many millennial cash app users will keep a portion of their savings in BTC as an inflation hedge especially if the new trend continues through 2019. A trend that starts in early 2019 is likely to continue through 2020 thanks to the Bitcoin reward halving which will reduce the supply (and thereby inflation caused by new coins) by half.
The price is finding support and resistance along the trendlines of this pitchfork , this is especially visible on the 15-minute chart.
The fact that the %50 fib is now support is very bullish . It is one of many things that confirm the new trend, which started many weeks ago
Here are the major support and resistance levels:
Support -
$4833 - Strong, 50% Fib
Resistance -
~$5200 - Weak, 18 Sidereal month EMA
~$5500 - Strong, horizontal resistance was support on the way down
$5811 - Very Strong Support during bear market prior to capitulation also critical 78.6% Fib
Anyone who thinks the crypto market is going to come back down hard simply needs to look at the S&P 500 chart after momentum reversal. When momentum reverses this hard you do not want to be short for long, the trend is your friend and all that.
It is folks shorting with leverage and getting stopped out that fuels the initial parabolic move, it continues as more and more traders get in line with the new trend. It can take months or years to run out of steam and for the momentum to change direction again.
Fundamentals are also in the favor of Bitcoin . As the bear market dragged on, transaction volume continued to tick higher. Segwit transactions are the majority of transactions now and they are cheaper and have effectively quadrupled the capacity of the blocks. Lightning is in advanced stages of consumer product prototyping. Many millennial cash app users will keep a portion of their savings in BTC as an inflation hedge especially if the new trend continues through 2019. A trend that starts in early 2019 is likely to continue through 2020 thanks to the Bitcoin reward halving which will reduce the supply (and thereby inflation caused by new coins) by half.
The price is finding support and resistance along the trendlines of this pitchfork , this is especially visible on the 15-minute chart.
The fact that the %50 fib is now support is very bullish . It is one of many things that confirm the new trend, which started many weeks ago
Here are the major support and resistance levels:
Support -
$4833 - Strong, 50% Fib
Resistance -
~$5200 - Weak, 18 Sidereal month EMA
~$5500 - Strong, horizontal resistance was support on the way down
$5811 - Very Strong Support during bear market prior to capitulation also critical 78.6% Fib
