Right now there is somewhat of a catch 22 around the crypto markets, Bitcoin is currently caught up in a fair amount of indecision around $5500, will a golden cross prove deathly? Or will we finally get above $6k?
There are plenty of theories about what is potentially about to go down within the crypto markets, and many of them appear to be fairly certain there will be some sort of imminent retrace from the #1…
However, Josh Rager suggests that Bitcoin (BTC) could go slightly higher before any potential pullback, citing $6400 as an interest area, but caveats to state that many buyers of the infamous $6k region may end up dumping around here in order to balance their books:
$BTC – possible scenario
Bitcoin continues to make its way up to the peak interest area at $6400+
Lots of historical volume at this level and would create peak fomo
This is where people who bought previously at $6k have the opportunity sell to fomo buyers before a retrace pic.twitter.com/XaUZvByhB2
— Josh Rager 📈 (@Josh_Rager) April 24, 2019
support for this retrace theory is given by another trader, Chris Hyso, who believes that based on the 4hr chart BTC is looking slightly weak after failing to break through upper resistance an falling back through support levels; adding that could provide a leg down to around $5200, albeit with BTC keeping its uptrend.
$BTC/USD doesn’t look good on 4hr and below, keep in mind it could take a 20%+ haircut and the uptrend would still be intact. Not a good spot to be long, I’m not shorting counter trend either. So much confluence at $47-48xx, set bids and hope they get hit. Good week for golf & 🍻 pic.twitter.com/UTbkCtYjB8
— Chris Hyso (@TheeFreshman) April 25, 2019
As for a catalyst for growth, one analyst, alluded to the fact that a recent massive minting of Tether may provide some much needed capital to bolster the #1:
$300m new USDT minted.. Probably nothing right?? $btc😈 pic.twitter.com/XwA9kb5ReN
— fil₿fil₿ (@filbfilb) April 24, 2019
However, some took issue with the fact that nothing had happened as yet, stating that a Tether pump usually occurs fairly quickly after minting:
I have 2 issues with this. 1) on Aug 22 tether printed $100M and BTC went up 8% in minutes. This $300 was printed days ago so we have probably seen the effects already
— Joel Smith (@Joeltron3030) April 25, 2019
in response to the above, one user noted the delayed reaction in the spot price, as well as the recent golden cross that recently formed within BTC. This point was also retorted with another user suggesting that this bullish formation may have failed:
Thanks for the outlook. Apparently the last golden cross failed and we dropped. People are expecting that to happen again..Maybe a retest to the 200 week MA. The bears have a strong case….
— Joel Smith (@Joeltron3030) April 25, 2019
The topic of a golden cross was broached by Chepicap’s own technical analysis wizard, David Borman, who took a look back to 2015 at the emergence of the last golden cross.
This has been a similar topic of many analysts who draw parallels between the last formation of this bullish crossover and the subsequent bull run which came after.
However, Borman points to the fact that back in 2015 there was actually 2 golden crosses which occurred within a short period of each other. The first of which failed, and led to the inverse of this bullish indicator, known as a death cross. Luckily this bearish formation didn’t last and we had another golden cross – the very same which effectively led us to salvation.
Borman assumes we’re more likely seeing a formation reminiscent of the first golden cross, however, keeping positive, suggests that one of two things is probably likely to happen:
1) Closing the week above the 50-week moving average would likely see us above $6k with the golden cross having done its job. Bullish.
2) a fall below the $5300 support may see the lower $4k range with history repeating itself and the possibility of a failed golden cross. Not so bullish…
The Bitcoin GOLDEN CROSS! What will happen with the price? $$$ Subscribe to the Chepicap YouTube Channel for more videos!
So it seems as if most of the analysis is still fairly ambiguous with the consensus being that Bitcoin could potentially retrace fairly soon. However, how large that retrace will depend largely on which support manages to hold.
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