Bitcoin Must Clear The 50 Week MA To Look Bullish
Updated
Finally, the market is showing some signs of a short term bottom. As I mentioned in my last video, volume has shown that buyers have finally shown up. However, I am still medium-term to long-term bearish until Bitcoin can break above the 50 week MA again (red). As shown on the left side of the chart, Bitcoin had some substantial bounces in 2018 that were met with strong resistance. At the moment, the yellow 100 week MA is serving as support. The 9 week EMA (orange) can also serve as some guidance - currently it lies at 43.6k. The 50 week is all the way up above 47k at the moment, which shows how far Bitcoin can bounce from current levels and still remain under sell pressure.
Bearish signals to look out for in the coming weeks:
1) Buyer volume weakening as Bitcoin heads towards the 50 week Moving Average
2) Altcoins and overly hyped projects significantly outperforming Bitcoin during the bounce.
3) Longer term holders beginning to cash out as price moves higher.
Bullish signals, in case crypto does not enter a longer term bearish period:
1) Bitcoin starts to outperform other cryptocurrencies for a time, at least until it heads towards the previous high.
2) The 50 week MA does not serve as strong resistance.
It's possible we're already close to the top of the bounce, but there is still the possibility of substantial upside, even if the market will make new lows later. If larger players are to begin exiting the space, they need to attract buyers. This would happen if sentiment really flips bullish again.
Let's see what happens!
-Victor Cobra
As always, this is not meant as financial advice. This is purely meant for speculation and entertainment.
Bearish signals to look out for in the coming weeks:
1) Buyer volume weakening as Bitcoin heads towards the 50 week Moving Average
2) Altcoins and overly hyped projects significantly outperforming Bitcoin during the bounce.
3) Longer term holders beginning to cash out as price moves higher.
Bullish signals, in case crypto does not enter a longer term bearish period:
1) Bitcoin starts to outperform other cryptocurrencies for a time, at least until it heads towards the previous high.
2) The 50 week MA does not serve as strong resistance.
It's possible we're already close to the top of the bounce, but there is still the possibility of substantial upside, even if the market will make new lows later. If larger players are to begin exiting the space, they need to attract buyers. This would happen if sentiment really flips bullish again.
Let's see what happens!
-Victor Cobra
As always, this is not meant as financial advice. This is purely meant for speculation and entertainment.
Note
It's also possible BItcoin finds resistance already, above 40k, and moves sideways for some weeks. There are many possibilities. All I can really do is just observe and speculate as things unfold.
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