Bitcoin in the Re-accumulation Phase But Market Not Confident about Price Escalation

  • Long term sentiments bullish but in the short term, the market is still fearful of another decline

Since yesterday’s lowest point, Bitcoin has risen over 20%, going to nearly $6,900 on Bitstamp. At the time of writing, BTC/USD has been trading around $6,700 while managing $2.5 billion on top ten exchanges with real volume.

Bitcoin has made a good jump that according to some traders could go to $7,500 level with the “crucial area to break is still the $6,800-6,950 zone.”

Last week, before the weekend, the world’s leading cryptocurrency jumped to about $7,000 level but the same day we went down to below $5,700. So, there’s yet to be known if we would be holding this level this time.

According to Trader XO, this rally might not be a real one as bitcoin tends to revisit the previous levels after making a pullback. He said,

“Don’t be surprised if we see one more raid around $6,500s before a bigger drop – wiping out a large number of late shorts / tight stops.”

Another trader Jonny Moe, who is “bullish as hell” where Bitcoin is heading fundamentally in the next few months, sees a “large bear flag right into horizontal resistance” that could see us revisiting the $3,000 to $4,000 range.

Tuur Demeester of Adamant Capital is also “not sure” that bitcoin will hold the current levels and believes it to be in the re-accumulation phase.

Has Bitcoin Bottomed?

Over the past few weeks, the price of bitcoin has been in a downturn that saw the digital asset crashing to $3,850. Could it be the bottom of this cycle? According to many, it might not be and we could very well visit new lows.

If equities fall another 30%, BlockTower Capital CIO Ari Paul says, both bitcoin and gold could go lower. Although they are still risk assets, with Wall Street focusing on inflation and depreciation 10x as much as 2009 and Fed announcing “infinite” money supply, both the assets can “catch a sustainable bid even before equities start recovering.”

In the long term, the market is confident and bullish on cryptos while seeing the pullbacks as buying the dip opportunities. But in the short term, the market is having a mixed reaction, with some expecting the world’s leading digital asset to continue to see high volatility and fall back to $4,200 level while others believe it’s time for BTC to soar 50 days before the halving. Analyst with pseudonym Ceteris Paribus said,

“Bitcoin is going to pump so fucking hard at some point, but there can be some nasty swings before it happens. Cut down on your margin positions heavily, hold the majority spot. Don’t get wiped out.”

“You think the worst case scenario is being in cash during the BTC pump? It’s not. It’s being early, getting liquidated before the pump, and then missing out on all the gains you could have had if you played it conservatively.”

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Author: AnTy

Bitcoin: Trend Reversal or Another Push Before We Fall Flat?

  • Bitcoin climbs to $8,000, market sentiments simmers down from “extreme fear”
  • Trader says Bitcoin still in a downtrend but analyst says a break above $8,100 bullish
  • BTC’s next move is crucial as it “will largely determine its course for the foreseeable future”

Ever since Bitcoin hit $6,850 on Jan. 3rd, the digital asset has been slowly making its way upwards.

First, on the same day, we went to $7,350 level than on Jan. 5 we made it to $7,450. On Jan. 6, we added another $100 only to surpass $8,000 level on Jan. 7.

Currently trading at $7,874, in the past 24 hours, the trading volume took a jump as well going from less than $200 million on the weekend to more than $1 billion.

With 4.18% gains, Bitcoin is today’s biggest gainer among the top 20 cryptocurrencies. These gains also have investors coming out of the “extreme fear,” a sentiment the market has been experiencing since November.

A Break above $8,100 will be Bullish

The flagship cryptocurrency might have everyone excited with investors expecting some big moves ahead. But according to analyst The Cryptomist, we won’t be reaching $8,800 level next, at least not this time around.

On Dec. 30, how a possible daily ascending triangle within a weekly falling wedge plays out, we would be breaking out to $7,900 and $8,800 would be possible as well, said The Cryptomist.

But only if BTC manages to break $8,100 then she will turn bullish.

A similar bearish sentiment is shared by TraderXO whos says Bitcoin is still in a downtrend which means the price can hit $8,200-$8,500 only to fall flat. However, analyst CL is calling for a trend reversal based on the 4hr 200MA.

When $10k?

The ongoing Bitcoin market movement, sideways ranges in a downtrend, trader Cold Blooded Shiller says represents re-distribution instead of accumulation.

The accumulation borns from a steady uptrend and that he says happens when we made the first strong move with $4k range before “establishing the grind.”

Trader Nik Patel meanwhile says if BTC manages to close above the trendline resistance from June 2019 at $7,413, it is a good sign for the leading cryptocurrency because Bitcoin failed to do so on numerous occasions.

The wing low at $6,490, in mid-December, was swept and closed with an engulfing candle. Then we had a consolidation below $7,700 resistance only to now have a breakout.

So, if or the first time in six months, we manage to close above the trendline resistance, we could climb to $10,630 in the coming months, but of course, that will be riddled with a couple of corrections.

Whatever is BTC’s next move, trader Scott Melker says, it “will largely determine its course for the foreseeable future.”

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Author: AnTy