Bitcoin Entering Key Region
Analyst CryptoBirb recently claimed that the upcoming few days will be of utmost importance to Bitcoin (BTC). In fact, in a recent Twitter comment, he remarked that this could very well be the cryptocurrency’s most importantly weekly close “ever,” as key one-day, one-week, one-month, and one-quarter candles close here. All this also comes as Bitcoin has been testing a resistance trendline, which haunted BTC at $8,500, $6,500, and potentially at $4,200 now.
With there purportedly being “massive moves on blockchain” in recent weeks, likely touching on the uptick in both trading volume and transactional throughput, he writes that the market is getting ready for three scenarios.
- Bullish: Birb claims that the bullish scenario will see BTC soon breakout above $4,400, which could easily bring it to $5,200 due to a gap in order book resistance in that range. However, this doesn’t mean that BTC is ‘home free’. The crypto will then need to test $5,800, which the trader sees as the ultimate test as to whether Bitcoin will enter into a bull run or not. $5,800 is, of course, where BTC bottomed in the summer of last year.
- Fakeout – Neutral: A fakeout scenario would see BTC break above $4,200, an auspicious resistance level, and then fail to surmount $4,400, potentially leading to a scenario where the crypto market range trades for months.
- Bearish: Last but not least, this harrowing scenario would see $4,200 get rejected hard, thus leading to a “depression” in the market. This would result in a massive downside wick, potentially bringing BTC between $1,360 to $1,758, before a slow uptrend to an eventual bull market.
Upside? Downside?
While CryptoBirb didn’t give an explicit directional forecast, some are sure that upside is in the cards. Technical analyst CryptoHamster recent drew attention to Bitcoin’s one-month chart in a bid to express that market conditions could be improving, believe it or not. He writes that if you factor in the Heiken-Ashi Candle structures, which track trends rather than explicit movements, a breakout could be in store.
The first green monthly candle has been witnessed since April. On top of that, February’s green candle was underscored by a large uptick in volume, preceded by a slow uptrend, leading Hamster to claim that further moves higher could very well be in Bitcoin’s cards.
Filb Filb seems to also be under the impression that the bullish scenario is likely. He recently took to Twitter writing that if Bitcoin repeats the price action it underwent late last year, but reverse, it could spike to $6,000, thus killing the crypto bear that has plagued this market since late-2017.
In another analysis, he opined that the 12-hour moving average convergence divergence (MACD) has trended positive above zero. The chaikin money flow has purportedly signalled that there is underlying buy-side pressure in this market. And, more importantly, the cryptocurrency has begun to make a move on the $4,000 range.
Photo by Chris Liverani on Unsplash
