Bitcoin saw a notable overnight rally that allowed it to move as high as ,300, with this coming about after an extended period of trading sideways within the lower-,000 region for the latter part of this past week.
It now appears that bulls are targeting a movement towards ,000, as resistance could be weakening as bulls begin mustering up further strength.
This also comes as bulls attempt to surmount a historically significant moving average that could prove to be the impetus for BTC’s next major uptrend – should bulls successfully push past it.
Bitcoin Pushes Higher as it Shows Signs of Seeing Further Momentum
At the time of writing, Bitcoin is trading up just over 2% at its current price of ,230, which marks a slight climb from daily lows of ,050 that were set during the bout of consolidation seen yesterday.
This climb, although relatively small in dollar-terms, is significant from the standpoint of the crypto moving past its first near-term resistance level at ,200 – as this is where bulls faced multiple harsh rejections at throughout the past several days.
One interesting observation from a popular pseudonymous Twitter analyst is that Bitcoin’s inverse chart seems to paint a highly bullish situation for the crypto, with a target existing at ,000.
“Bitcoin daily inverse chart makes a compelling case for the upcoming 00 test,” he noted while pointing to the below chart.
Image Courtesy of Big Cheds
Some traders and investors believe that inverse charts can provide a unique insight into an asset’s technical situation, as they erase bias and help you view the asset with a different perspective.
While looking at the chart the analyst references, it does appear that Bitcoin is poised to move towards its 200-day moving average that exists at roughly ,000.
BTC’s Reaction to This Key Technical Level Could Spark the Next Major Uptrend
Bitcoin’s potential push to its 200-day moving average also comes as the crypto begins attempting to flip its 89-day ema, which is a historically significant technical level that has determined previous trends.
Another analyst pointed to this level in a recent tweet, explaining that it has been resistance for BTC for 6 weeks now.
“Never underestimate the impact of the 89ema on the greater trend. It has a history of being an incredibly relevant support and resistance level – any bounce/rejection from it has huge consequences on the direction. Currently has been resistance for nearly 6 weeks,” he explained.
Image Courtesy of Teddy
Featured image from Unsplash.
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Here’s Why Bitcoin Rallying 15% to $8,000 Is Just a Matter of Time
After falling as low as ,500 this week seemingly due to stock market weakness, Bitcoin has mounted a strong comeback over the past 24 hours, rallying as high as ,200 as bulls have taken over. Other cryptocurrencies have registered even more impressive gains.
,000, some analysts say, is next for Bitcoin as the technicals suggest that the rally is done yet.
Related Reading: Ethereum Firm Launches Controversial Product, and the Crypto Community Isn’t Pleased
Bitcoin Hitting ,000 is “at Hand”
Ever since the ,700 bottom, Bitcoin has mounted an impressive comeback, rallying as high as ,500 last week as global markets have also seen a similar recovery to pre-crash levels.
But the rally might not be done yet. Crypto trader LightCrypto, or just Light, recently remarked that it “feels like ,000 is at hand,” referencing his sentiment that the cryptocurrency could soon rally just under 15% from current levels to ,000.
As to why this is the case, he remarked that with the potential of new buyers “absorbing profit-taking [by longs] and miner selling,” there’s a good chance ,000 will be “accepted,” which could result in another strong leg to the upside.
Chances Are, Buyers Will Win the Tug-of-War
Although Light’s statement made it certain that ,000 is not a certainty, there are signs that buyers will win, that buyers will manage to wrest Bitcoin to ,000 as opposed to a reversion to the downside.
Firstly, as the trader mentioned above indicated in his chart, ,000 is a key point of interest for the leading cryptocurrency, with certain analysts branding it a “decision point” for the market. Bitcoin managing to close Thursday’s candle above this resistance and it continuing to do so in the coming days, into the weekly close, will add credence to the bull case.
Related Reading: Bitcoin Could “Quickly” Breach ,000 High Due to This Mining Factor
Secondly, buyers are currently involved in this nascent market in a seemingly bigger size than sellers, or at least the buyer sub-set is increasing to a point that prices will naturally start to gravitate higher, sort of how they did just before and after 2016’s block reward halving.
A case in point of this: crypto-asset fund/vehicle provider Grayscale Investments, in its latest quarterly investment report, revealed that it took in a record 3.7 million worth of investment in Q1 of 2020.
As reported by NewsBTC previously, a good portion of this capital went to Ethereum, but most of it was allocated to Bitcoin. The raise amount is especially notable as it is approximately double the inflows Grayscale exhibited in Q4 of 2019, and much much more than any quarter before that.
It is representative of a larger trend in the crypto markets suggesting that both retail and institutional buy-side volume is bubbling as the halving approaches, for it is now under a month out.
These two trends add credence to the idea that Bitcoin will rally to ,000. To reiterate what Light said:
“Acceptance of this price level comes from new buyers absorbing profit-taking and miner selling. Feels like ,000 is at hand.”
Photo by Michał Mancewicz on Unsplash
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Chances Are, Bitcoin Will Soon Explode 20% Higher to $8,000: Here’s Why
Despite the brutal crash seen earlier this month, Bitcoin has performed extremely well over the past few days, rallying from the ,000s to a price as high as ,000 just the other day. The bullish momentum has petered out over the past few days, with BTC stalling in the mid-,000s, but a simple technical factor suggests that the cryptocurrency will soon resume its rally higher.
Related Reading: House Democrats Propose ‘Digital Dollar’ in Move Big For Bitcoin: Here’s Why
Bitcoin Could Soon Rally Towards ,000: Simple Technical Factor
The rally over the past few days has not gone unnoticed; traders have seen the cryptocurrency tick over support level after support level as it has gained.
Indeed, prominent trader Byzantine General recently commented on the bullish importance of the rally over the past few days, stating in a message published to his Telegram channel that:
“Something I’ll keep in mind: We reclaimed the basis of the daily BB. Usually, when BTC does that it tags the top of the bands.”
What he’s saying is that since Bitcoin has claimed the middle Bollinger Band on the daily chart as support, it has a high likelihood of rallying to the top of the indicator’s range, which will soon be around ,000.
Furthermore, since the (short-term) stock market bottom that was seen just last week, the Dow Jones Index has rallied 20% higher, entering a “bull market” by the textbook definition of the term. Analysts say that in these times, the correlation between the S&P 500 and Bitcoin is growing tighter, suggesting that further strength in equities could wrest the Bitcoin higher as investor confidence returns.
Under Key Resistance
Although Byzantine General sees a move towards ,000, his chart shows that’s where the rally likely stops. And that’s for good reason.
Per previous reports from NewsBTC, Bitcoin trader Filb Filb explained that ,000 is the price point at which there is where there is the worst cluster of resistance seen since the bear market of 2018”:
The 200-day moving average.
The 100-day moving average.
The 50-day moving average.
The 20-month moving average.
Bitcoin’s 61.8% Fibonacci Retracement of the February high to the ,800 bottom.
And the yearly pivot level.
The fact that all these levels are currently situated at ,000 suggests it won’t be easy for buyers to break through that level in one go.
Related Reading: Bitcoin Price Still Following Exact Pattern That Marked 2018’s ,000 Bottom
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All Eyes On $8,000: Why Bitcoin Needs to Clear This Crucial Level
Over the past few weeks, Bitcoin has performed surprisingly well, rallying as high as ,100 (on Bitstamp) just days ago, surging higher from the ,800 bottom seen during the March 12th to 13th capitulation. Even though the bull trend has been exhausted, BTC continues to trade at ,600, consolidating in the mid-,000s as it determines which way to head next.
Related Reading: House Democrats Propose ‘Digital Dollar’ in Move Big For Bitcoin: Here’s Why
Despite this price action, the cryptocurrency remains below a number of key resistance levels, as pointed out by noted Bitcoin trader Filb Filb, who called BTC’s price action for all of Q4 and in January.
Bitcoin Needs to Break Past ,000
In a recent TradingView analysis, cryptocurrency analyst Filb Filb drew attention to the importance of ,000, a price point which he stated has the “worst cluster of resistance seen since the bear market of 2018.” Indeed, he noted that the following technical levels are currently situated at ,000 (subject to change over the next few weeks):
The 200-day moving average.
The 100-day moving average.
The 50-day moving average.
The 20-month moving average.
Bitcoin’s 61.8% Fibonacci Retracement of the February high to the ,800 bottom.
And the yearly pivot level.
Can It Clear That Level?
The pertinent question remains — does Bitcoin have the potential to clear ,000?
Analysts, unfortunately, are divided about this question.
Per previous reports from NewsBTC, Bitcoin is in the midst of following the bump-and-run-reversal bottom schematic found in Thomas Bulkowski’s Encyclopedia of Chart Patterns.
As it stands, BTC is in the fourth phase of the BARR bottom, which should be followed by a surge past the phase one highs around ,000 in the coming week or two, meaning the whole capitulation could be shortly reversed.
The thing is, there remains the overhead risk of traditional markets continuing to fall, which could depress Bitcoin. As explained by Chris Burnisike, partner at Placeholder Capital:
“If we get another “sell everything” moment in global markets, as we did the week of 3/9, Bitcoin & crypto will not be spared.”
This theory has been echoed by trader Cantering Clark, who remarked that the “moment equities s**t the bed again Bitcoin will follow,” explaining that the reality is some of the world’s “largest and most fundamentally important industries” are being adversely affected by the coronavirus outbreak, making it unlikely crypto will be spared.
The analyst further explained that there’s also no telling which crypto companies, including Bitcoin exchanges, will be affected by the global fallout of a recessionary event, further putting BTC at risk of collapse.
While the stock market saw extremely strong two days of green on Tuesday and Wednesday (with Tuesday registering a multi-decade record in terms of the Dow Jones’ daily % gain), COVID-19 continues to spread at a growing rate around the world while countries have announced extreme unemployment, seemingly suggesting it may take a while for the economy to get back on its feet without help.
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Bitcoin Price Monthly Close Above $8,000 Forms Bullish ‘Hammer’ Reversal
The current monthly candle on Bitcoin price charts is unlike any other that can be found since the bear market first began, with a massive bottom wick nearly double the length of the candle body itself.
Should Bitcoin price close the monthly candle at around or above ,000, it would form a powerfully bullish reversal candlestick called a “hammer.” A close like this could signal a reversal is near, and that the low is likely in.
Bitcoin Price Could Close Monthly As Powerful Reversal Candle
Bitcoin price has had an unusual start to the year. After rallying over 50% and going on to retest highs above ,000, weeks later, the first-ever cryptocurrency plummeted to under ,000 after a historic, single-day collapse.
The resulting price action has left one of the largest monthly red candles on Bitcoin price charts over the last five years. Red candles this large and powerful haven’t been seen since the cryptocurrency last bottomed during the 2014-2015 bear market.
Related Reading | Economist: Government Overspending Amidst Crisis is Bullish for Bitcoin
After the record-breaking collapse to below ,000, Bitcoin quickly recovered and grew by nearly double, leaving a massive wick behind on the monthly candle. However, resistance at ,800 and higher are keeping the leading cryptocurrency by market cap from reaching higher levels.
If Bitcoin price can regain some momentum, and close the monthly candle this coming Tuesday back around or above ,000, then the monthly candle will close as a bullish “hammer” reversal candle.
If the #Bitcoin monthly candle closes around ,000 reducing the body candle… bullish hammer will come into play.
Be ready. pic.twitter.com/7zJ2EUX7xp
— Crypto Rand (@crypto_rand) March 25, 2020
Education: Learn All About the Bullish Hammer Japanese Candlestick
Bitcoin price charts, like the price charts of any assets, are often displayed with green and red candles with varying sized bodies and wicks. These are called Japanese candlesticks.
Other types of price charts include line charts, Kagi, Heikin Ashi, Renko, and Point & Figure. All offer analysts a different perspective on the price action, but Japanese candlesticks are among the most common for their easy to read signals and price patterns.
How these Japanese candlesticks close or how they appear in sequence can oftentimes help analysts and traders predict upcoming price action.
Certain candlesticks and patterns can even signal when a reversal is near. Among the type of candlesticks that provide such a signal, is the bullish hammer.
The candlestick is represented by a long wick at the bottom and a small or non-existent wick at the top of a small candle body. The candle resembles a hammer with a handle and can close green or red.
Related Reading | This 90-Year-Old Japanese Indicator Says Bitcoin Uptrend Is Forming
The candlestick depicts sellers coming on strong during the candle open, but the selloff is absorbed by buyers rapidly scooping up the asset at such low prices. This type of price action typically signals a reversal is due, as the price has fallen to attractive enough prices to resume interest once again.
However, the candlestick is only valid with confirmation, or with upside following the monthly candle close forming such a pattern. If the pattern does confirm, the bottom is likely in, and Bitcoin price will resume into an uptrend from here.
Featured image from Shutterstock
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Bitcoin Rejected From $8,000, Are Bears in Complete Control Over Crypto?
Bitcoin has fallen to extreme lows this week, alongside the stock market. Fears over the coronavirus and a looming recession on the horizon have led to the year’s worst selloff.
However, this morning, a relief rally appeared to be in sight for bulls, however, shortly after Bitcoin breached back above ,000, it was swiftly swatted down by bears, putting Bitcoin at risk of even deeper lows.
Bitcoin Can’t Hold ,000 Just Weeks After Trading Above ,000
Bitcoin is struggling to stay above ,000, after just two weeks ago the asset was trading above the psychological level of ,000.
The cryptocurrency had been up by over 50% year-to-date before growing fears over the rapid spread of the coronavirus caused widespread fears to spill into financial markets.
The stock market fell to set its worst losses since the last recession, and Bitcoin, a high-risk speculative asset has followed the stock market in plummeting at light speed.
Related Reading | The Fate of Bitcoin Rests On This Seven-Year Secular Bull Market Support
Overnight Sunday night and into Monday morning, Bitcoin set a low at ,600, before bouncing.
The rally looked to have legs as this morning Bitcoin shot up by 0 to break cleanly above ,000.
But shortly after the level was taken, bears rejected Bitcoin back down to 00 where it is currently trading.
Given that the cryptocurrency is failing to hold a level that was bought up with fury just a month prior, suggests serious weakness in the crypto market.
But why was this level so strongly defended by bears? According to one crypto analyst, the rise this morning was a bearish retest, that failed to flip resistance into support.
That's what is known as an SR flip. Keep it basic.
Do not let them fool you with their bullish tricks.
This is bearish af. pic.twitter.com/IlYRjCouM1
— Jacob Canfield (@JacobCanfield) March 10, 2020
The recent price action suggests that Bitcoin is forming a parallel channel, much like it did throughout the end of February and into March.
Levels to Watch For Cryptocurrency Market Breakout or Further Breakdown
A breakout of this trading range will lead Bitcoin to either setting new lows, or finally getting a relief rally that is sustainable.
BTC 4hr:
New parallel channel? pic.twitter.com/KTigJvIR7H
— Nunya Bizniz (@Pladizow) March 10, 2020
The top of the range is set around ,100, with the bottom of it around ,700. Either level being taken out with multiple high timeframe candle closes will confirm the direction in the short-term.
Related Reading | How Fear and Greed in the Crypto Market Can Lead To Incredible Profit
Bitcoin is currently resting on its “miner’s bottom” which has acted as a launchpad for significant bounces in the past. Will this happen once again and will Bitcoin take off on a new bull market just ahead of the upcoming halving this May, or is Bitcoin doomed in the face of a recession and the coronavirus – a potential black swan event?
NewsBTC
Bitcoin Collapses Below $8,000 as S&P Futures Post 5% Loss: What’s Next?
After closely hugging ,000 for three or four hours, Bitcoin finally lost the support of ,000 just minutes ago, plunging as low as ,900 as of the time of this article’s writing and per data from TradingView.
Per data from Skew.com, this latest leg lower, which is the fifth of its kind in the past day, has seen million worth of BitMEX longs liquidated, meaning that over 0 million worth of such positions have been liquidated within the past 24 hours. Ouch.
This move comes as global markets have fallen off a cliff, so to say, with the futures of the S&P 500 and Dow Jones already down 5%, stopping at this level of loss because of limits. Oil is down 30%, falling as a price war begins between the world’s largest oil producers, including Saudi Arabia and Russia.
Gold, unsurprisingly, has rallied amidst this weakness in global equities and commodities, surmounting ,700 for the first time in years. Though, Bitcoin has been falling, showing that there may be some flaws in the digital gold narrative.
What’s Next for Bitcoin?
Analysts are currently divided over where Bitcoin will head next. Right now, most seem to be expecting lower prices, though, namely because BTC is currently trading like a risk-on asset, meaning that it should continue to fall in tandem with the stock market and other leading assets.
Some, however, are expecting the asset to soon find support. Josh Rager, a prominent cryptocurrency trader, recently remarked that Bitcoin has a Point of Control and a level of horizontal support between ,700 and ,995, meaning that it could catch a bid in this region, adding that a bounce to a ,550 could be had.
Also, just prior to this latest leg lower, CryptoHamster remarked that Bitcoin is looking extremely oversold, with a number of bullish divergences forming on the one-day chart with the Stochastic, MACD, MFI, EFL, Fisher, and other key indicators.
#Bitcoin is oversold.Also, there is a high potential for bullish divergencies on a daily TF:– Stoch.– Stoch. RSI– MACD– MFI– EFL– Fisher Transform– Klinger OscillatorLet's wait for a daily candle close – 8000$ should hold, otherwise divergences are invalid.$BTC $BTCUSD pic.twitter.com/azXghbOBMI
— CryptoHamster (@CryptoHamsterIO) March 9, 2020
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Bitcoin Taps $8,000 as Violent Sell-Off Rocks S&P 500 Futures & Oil
It seems that bulls can’t catch a break. Bitcoin just minutes ago tapped ,000 (per data from TradingView), bringing its 36-hour performance to a dismal -13%, having peaked at ,200 on Saturday.
This latest leg lower comes after the cryptocurrency attempted to stabilize above ,300 ahead of the weekly close, though this was done to no avail.
Bitcoin’s brutal drop comes as global markets have entered a period of dramatic volatility, or what some would say is chaos.
Case in point: ahead of Monday’s open, the futures of global equities are looking extremely bearish; crude oil futures are down 30%, gold is up to ,700, the Dow Jones and S&P 500 futures are looking poised to open 5% down when Monday morning rolls around.
It appears that there’s a global crunch in all assets, save for gold and Treasuries, which are appreciating as fears of a recession (and potentially something wore) roll over markets.
Bitcoin At Key Level
With this move, Bitcoin has entered key bounce territory; analyst CryptoHamster noted that with the recent move lower, the price of the leading cryptocurrency has tapped the bottom of a descending channel the asset has traded in since the ,600 peak seen in mid-February. The cryptocurrency falling below the support could open the door for a stronger drop.
The channel support test. #bitcoin $BTC $BTCUSD pic.twitter.com/wBLLRdGYz2
— CryptoHamster (@CryptoHamsterIO) March 8, 2020
Featured Image from Shutterstock
NewsBTC
A Bitcoin Plunge To $8,000 On The Horizon, As Bulls Show Weak Hands
Bitcoin price failed to stay above the key ,500 support area and extended its decline against the US Dollar. BTC price is likely to continue lower towards ,000 or ,880.
Bitcoin started a strong corrective decrease from the ,200 resistance area.
The price broke the key ,500 and ,470 support levels to move further into a bearish zone.
Yesterday’s highlighted key bearish trend line is active with resistance near ,470 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to extend its decline towards the ,000 support level in the near term.
Bitcoin Price Is Facing Hurdles
Yesterday, we discussed the importance of the ,500 and ,470 support levels for bitcoin against the US Dollar. BTC price failed to stay in the bullish zone and recently declined below ,470.
Moreover, there was a close below ,500 and the 100 hourly simple moving average. As a result, there was a downside extension and the price traded below ,300.
A new weekly low is formed near ,263 and the price is currently consolidating losses. An initial resistance for the bulls is near the ,380 level. It coincides with the 23.6% Fib retracement level of the recent decline from the ,794 high to ,263 low.
The first major resistance on the upside is near the ,470 level (the recent breakdown level). Additionally, yesterday’s highlighted key bearish trend line is active with resistance near ,470 on the hourly chart of the BTC/USD pair.
Bitcoin Price
The next key resistance is near ,500 and ,520. It coincides with the 50% Fib retracement level of the recent decline from the ,794 high to ,263 low.
Therefore, bitcoin price must settle above ,470 and ,520 to move back into a positive zone. In the mentioned case, it could revisit the ,800 resistance area.
BTC Could Revisit ,000
If BTC price continues to slide, it could struggle to stay above the ,200 support area. In the mentioned case, there are high chances of it hitting the ,000 support level in the near term.
Overall, bitcoin is showing a few bearish signs and it seems an interim top is formed near ,200. The next set of bearish targets could be ,000 or ,800, below which the bears might even aim ,200.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level, with bearish signs.
Major Support Levels – ,200 followed by ,000.
Major Resistance Levels – ,470, ,500 and ,520. The post appeared first on NewsBTC.
NewsBTC
Bitcoin Decisively Retakes $8,000: What’s Next for Crypto?
After falling by over 8% from the local top at ,460, Bitcoin (BTC) has started to mount a comeback over the past few hours. The cryptocurrency, since hitting prices just under ,700 earlier today, is now trading around ,100, seemingly trying to retake the key ,000 support region, which has been of historical relevance.
(This surge comes shortly after Elon Musk — yes, the Elon Musk that runs SpaceX and Tesla and also co-founded PayPal and a bajillion other companies — mentioned Bitcoin on Twitter. More information on that can be found at this link. We’re not saying this is correlated, but it is somewhat eerie.)
Related Reading: Analysts Think Ripple’s (XRP) Price Chart is “Absolute Trash”: Here’s Why
While this move is recent, what are analysts thinking of this latest move in the BTC price? Do they expect it to have a wider effect on the crypto market’s trajectory?
What’s Next for Bitcoin After Move Back to ,000
While not an entirely explosive move higher, the bounce from the ,700 region is notable. Prominent cryptocurrency trader Josh Rager noted that Bitcoin “bounced and closed at support,” as marked on his chart.
This means that the “price doesn’t look bad [as it] held where it needed [to],” before adding that the recent close sets the stage for a tight Bitcoin range to form between ,700 and ,400, which could be a precursor to an explosion high ahead of Bitcoin’s May 2020 block reward reduction.
$BTC Update
Price bounced and closed at support
Watching for a potential new range to develop above the previous range
Price doesn't look bad and held where it needed – trade the ranges and be patient, stop worrying about k or k right now pic.twitter.com/73lFubZVqa
— Josh Rager (@Josh_Rager) January 10, 2020
Prominent Bitcoin trader Storm noted that according to a key trend indicator on the four-hour BTC chart, bulls remain in control (as of 20 hours ago), adding that he thinks it’s thus worth buying the cryptocurrency between ,700 to ,900 to factor in the potential upside.
Very nice 4H trend change on the accATR, definitely worth picking up spot 7700-7900 pic.twitter.com/hSLPM7iQtg
— storm (@stormXBT) January 9, 2020
It appears that a number of key indicators remain bullish as well, seemingly signifying that the recent 8% drop was a to-be-expected correction after a dramatic surge higher.
Price Needs to Retake ,870 on Weekly Basis
Sure, the daily outlook for Bitcoin is starting to look positive again. Though, prominent trader HornHairs has noted that the cryptocurrency will need to close above ,870 on Sunday (the weekly candle close), or else he will expect a dramatic ~25% move down to ,000, for that close would confirm that BTC was trading in a clear macro bull trap.
$BTC
We got the breakout, which was a good start, but as the weekly chart stands, it looks like a bull trap.
If we close below 70 on Sunday, my expectations will be a move down to k. Very important next few days. Nothing conclusive until Sunday. pic.twitter.com/9V4Gia3b4n
— HornHairs (@CryptoHornHairs) January 9, 2020
Related Reading: A Big Plunge to Sub-0 for Ethereum Is Imminent If This Happens
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