Between Nov,2018 and April,2019 BTC tried breaching the 4400 resistance line 4 times, 2 times in December, once in January and once in February. It was finally successful only in April when this line was breached. The reason why this area is crucial is because of two things a) because of the breakout from the sloping trend line and also the Golden crossover (Between your 20day and 200day MA). This indicates that the bottom has at least been reached in the range of 3500. Even though i find that the bulls will try to break the 5500-5900 mark, they might not be successful this time and there is a high possibility that BTC is range bound between 4500-5400, this scenario is quite possible. But if BTC breaks the 5500-5900 resistance range, then we can see new highs being created for this year with possibility to go up to 6400.
Now over the past month the sentiment has also improved leading to inflow of money in the crypto space even though the entire sentiment has not turned bullish yet. Investors are still wary of the market because of what happened in 2018 especially. So this crucial resistance breaching is important from a investor sentiment as well. The number of articles that predicted doom for the crypto industry has also reduced with major banks and players adopting the technology behind it. So coming back to the 5500-5900 resistance range is very important, if you can notice this was the point which was previously perceived as the bottom so breaching this line is very important to watch out for. Even though BTC might not breach the highs of 2018 immediately, such slow and steady growth adds to the overall positive sentiment in the market.
Trade Call : SELL, If BTC goes below 5200 and pick it up between 4700-4900 range. BUY if BTC breaks the 5500 mark and sell it at 5900-6200 range.
Please note that the trade calls are the authors opinions based on technical analysis and hence readers are requested to do their own in depth study before investing.
Now over the past month the sentiment has also improved leading to inflow of money in the crypto space even though the entire sentiment has not turned bullish yet. Investors are still wary of the market because of what happened in 2018 especially. So this crucial resistance breaching is important from a investor sentiment as well. The number of articles that predicted doom for the crypto industry has also reduced with major banks and players adopting the technology behind it. So coming back to the 5500-5900 resistance range is very important, if you can notice this was the point which was previously perceived as the bottom so breaching this line is very important to watch out for. Even though BTC might not breach the highs of 2018 immediately, such slow and steady growth adds to the overall positive sentiment in the market.
Trade Call : SELL, If BTC goes below 5200 and pick it up between 4700-4900 range. BUY if BTC breaks the 5500 mark and sell it at 5900-6200 range.
Please note that the trade calls are the authors opinions based on technical analysis and hence readers are requested to do their own in depth study before investing.