Last night saw a slide below $5k, followed by a bounce. Are lower price coming for BTC?
After an extremely bullish week at the start of this month, the last weekly candle closed on Sunday as a doji: a candle with a flat body, indicating a narrow trading range, and wicks up and down.
Dojis typically signal indecision, and that’s exactly what we’d expect after a $1,000 rally through multiple support lines. Many traders will be taking profit, disbelieving that prices can go higher in the near term. Others are convinced the bull market is on. The market is at a point of inflection, and once again it’s decision time. This kind of situation also calls for extreme caution on the part of traders, who risk being burned heavily if they make a wrong move – or converserly, profiting handsomely if they call the market right.
Last night, BTC sold back down into the $4,900 range, as it has done several times now, bouncing off a gently-rising support line. The last few 4h candles have show rising price on faltering volume. At this point, indications are still that the market favours a downward move. RSI on the daily is still close to the 70 (overbought) area.
Against that, we are clearly seeing a measure of confidence return to the crypto markets, and a Golden Cross is looming as the 50-day moving average rises to meet the 200-day moving average. BTC is currently trading above both, which is theoretically bullish.
However, we are still wary after that huge spike in price, brought about by just one large buyer. It’s entirely possible his motives were bad: to manipulate the market into thinking the bullrun was here, then sell the coins he had bought at the top. At the moment, we simply don’t know how this will turn out. The overall trend is unclear.
In other news, Binance has announced it is delisting BSV following Craig Wright’s legal action against @hodlonaut, and Calvin Ayre’s insults towards the exchange. Several other major crypto services have joined Binance and stated that they will no longer be supporting BSV.
Red hot news, scorching wit and searing opinion pieces from Crypto Inferno.