Bitcoin ended the bearish trend back in December 18. Since then the currency has risen quite significantly since it's low of 3120. From this point Bitcoin has continuously produced higher lows. Fast forward to more recent history. April 2 we see a huge spike in the price of Bitcoin. This should not be ignored as there was a massive rise on volume with it. As expected - our indicators immediately shoot into overbought territory. Though an asset can continue moving upward with divergences for a significant amount of time.
For the sake of this analysis we are not going to be relying heavily upon RSI or MACD. Instead, we are going to be looking at volume, and trend. Though after the big volume spike of April 2 the volume tapered off significantly, this should come as no surprise as that means many are in positions, the trend continued upward. This usually indicates that a reversal or correction is looming. And indeed it has. But with the trend we see that Bitcoin continues to produce higher lows (We'll look over the liquidity spike on Kraken as this is not an uncommon occurrence on this exchange).
Many analysts are already calling for 4.4k and under for Bitcoin since it touched liquidity at 5.6k. I, however, do not see that correction coming - yet. The bears have put a significant amount of pressure on Bitcoin since touching 5.6k and the pair has managed to stay above 5.1k. This shows that there is demand in this price range. Another important note is the mounting shorts. If Bitcoin does not break down - soon - these shorts will be forced to close their position causing the price to increase.
Bitcoin bulls are demonstrating strength at this level - even though the indicators may point to bearishness. And these indicators are not wrong. They just aren't happening right at this time. I expect to see Bitcoin push as high as $6646 at the top of the resistance before correction actually comes. It is at this point that the bearish drive to 4.2k - 4.4k that other analysts expect should happen. At which point Bitcoin will, yet again, produce a higher low and continue the bullish trend through 2019.
As always - risk mitigation is the key to success. Always have a plan in case the trade goes against you.
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BItcoin popped up as I expected it would. Pushing over $5750 briefly. This is a region of high resistance, though I still feel there is some more gas left in the tank. Traders should be careful at these prices.
Wrong... Bitcoin did not indeed end any bearish trend. If it’s below 6k, it’s bearish.
That doesn’t mean one shouldn’t accumulate below 6k, that just means watch the price.
I can’t believe that anyone is bullish right now especially after the fake buy bounce with hardly any volume after the tether news broke. Then we had some more volume-less buying... And now we’re breaking lower.
We’ve had over 9 straight weeks of positive net gains, so you really think it’s just going to keep on going just like that?
If I were you, I’d have a tight stop loss if you’re thinking of longing this bloody mess. This has bear written all over it.
That doesn’t mean one shouldn’t accumulate below 6k, that just means watch the price.
I can’t believe that anyone is bullish right now especially after the fake buy bounce with hardly any volume after the tether news broke. Then we had some more volume-less buying... And now we’re breaking lower.
We’ve had over 9 straight weeks of positive net gains, so you really think it’s just going to keep on going just like that?
If I were you, I’d have a tight stop loss if you’re thinking of longing this bloody mess. This has bear written all over it.