Bitcoin (BTC) Exudes Strength, But $6,000 Needs To Break For Bullish Continuation
Bitcoin Looks Strong
Despite the news regarding the Binance hack, Bitcoin (BTC) is purportedly still looking like a buyable asset. As analyst Jagged Software remarked on a recent tweet, “Bitcoin is still looking sexy”. This was in a reference to a chart that showed that Bitcoin remains in a clear uptrend and that an indicator, dubbed “EVP”, is currently signaling a “long” or “buy” order.
This comes after Josh Rager, a popular trader, noted that on Bitcoin’s three-day chart, the Guppy indicator, which weighs moving averages to determine trends, is looking to flip green following 2018’s downturn. What’s more, BTC has just crossed above its 200 three-day EMA. The confluence of such movement in the two aforementioned signals was last seen at the turn of 2015’s bear market.
And lastly, as Crypto Thies notes, the increase in short positions on Bitfinex is a sign that bulls have the advantage, adding that he expects a “continuation”. Yet, Thies makes it clear that for this continuation to be sustainable, $6,000 and $6,100 will need to be breached.
The Case For A Pullback
One trader, going by “Crypto Birb,” however, expects a pullback. The thing is, according to this analyst, such a move may actually be healthy for Bitcoin, and would actually set the stage for a final breakout from this brutal bear market. In a recent tweet, the analyst noted that BTC may soon see a bearish rejection from the $6,000 to $6,800 range, fall to $4,300 to establish a higher lower, and then move decisively above former resistance levels.
Per Birb, such a series of movements would confirm that a “bull market” has started, and that BTC and other digital assets could subsequently see new highs… eventually. “Unless these conditions are met, I strictly assume we’re in a bear market,” the commentator adds in a final quip.
While Birb is sure that a pullback may actually precede a bull run, some seem to expect such a bearish move just for the heck of it. As reported by Ethereum World News previously, Financial Survivalism, an analyst that has forecasted a BTC drop to sub-$2,000 levels before, explained Tuesday that there are a number of technical indicators acting as clear red flags. The daily TD sequential recently printed a red 9, just days after a “combo 13”, signaling an impending bearish reversal. What’s more, Bitcoin has seen a so-called “shooting star reversal doji” candle after testing major resistance, the upper bound of BTC’s medium-term trend line, hinting that bulls aren’t in full control yet.
In an analysis posted just days earlier, Magic Poop Cannon, a popular trader that forecasted Bitcoin’s move to $3,000, noted that there are an array of bearish divergences seen in the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and the Stochastic RSI, leading Magic to the conclusion that BTC is “wounded” and not prepared to enter a bull run just yet. He adds that the Network Value to Transactions ratio (NVT) is currently flashing a sell.
But this begs the question: which faction will win? Bulls or bears?