bitcoin Still Looks Hot
Over recent days, () has stagnated. After crashing to $4,950 late last week, has steadily ground higher, between $5,150 and $5,300 for the past 72 hours without as much as a hitch. And interestingly, some traders have deemed this indecision bearish, as activity across the crypto-board has begun to decline.
In fact, one analyst, going by “Magic Poop Cannon” on Twitter, that the lack of strong activity “painted half of an enormous evening star Doji pattern.” For those who missed the memo, an evening star is a reversal pattern, in which there is a large uptrend (seen last week), stagnation (this week), and reversal. A Doji candle is one in which its opening and closing price are effectively the same, signaling indecision in a market. If this “evening star Doji” pattern plays out as Magic expects, could see a 15% to 20% drop to $4,100 in the coming ten days, and then sell-off even further, potentially to the mid $3,000s, to finish this formation.
But, another investor claims that this non-action is actually bullish, not bearish. In a , Joe DiPasquale, the chief executive of crypto fund BitBull Capital, claimed that “consolidating above $5,000 could lead to further price appreciation.” DiPasquale explained that while his firm doesn’t believe that a 2017-esque rally is in crypto’s cards, the foundation is currently being built for a move higher in the long run.
On the matter of the recent move, he claims that the fact that has managed to hold above $5,000 range following a move that could be deemed “not organic or steady in nature,” is remarkably a good sign. DiPasquale adds that if this accumulation continues for “one to two more weeks,” a rally to $5,500 may be in .
Crypto UB, a popular trader, echoed the thought process put forth by DiPasquale. The commentator opined that the longer that holds around and above $5,182, the more likely a move up to the blue range, $5,500 “seems likely.”
BTC Poised To Head Higher?
Interestingly, however, some are convinced that will head even higher than $5,500. Crypto Thies, a Seattle-based trader who commands a following of over 26,300, claimed that the two-week Moving Average Convergence Divergence (MACD) measure has turned green, as the indicator’s signal lines have convincingly crossed over. The last time the ’s two-week MACD looked as it does now, was at $240 apiece, and the market was looking to recover from a large sell-off.
In a subsequent comment, Thies further explained why he is leaning bullish on . Citing his proprietary Market God indicator, which has accurately called crypto bottoms and tops historically, Thies noted that it recently issued a “buy” for the first time since 2015, right near the bottom of the previous bear market. He added that the fact that the 30-day exponential moving average (EMA) and 90-day EMA had crossed for the first time since January is another bullish sign, as it accentuates that bears are seeing their hegemony evaporate.
With this in mind, coupled with a combo analysis of Keltner Channels and Bollinger Bands, Thies determined that a rally “ from where we are, without retesting lows” is possible, barring that holds above $4,800. He added that his year-end target for is “near $8,000,” if the current uptrend and overall recovery stays its course.
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Published at Thu, 18 Apr 2019 06:09:12 +0000
