Can Bitcoin dodge a 3-day Death cross and go past $10,500?
8th April market analysis of Bitcoin — Bearish Pinbar Candle, 3-day death cross and how to sell $500k worth of BTC
Welcome to another sunny morning for Crypto. In the past 24 hours Bitcoin has been able to keep itself afloat above $7000. $7000 is a key level to watch as the rising wedge that we were talking about yesterday is narrowing down and a break out in the negative direction will ensure low $6000s. The more time Bitcoin spends above $7000, the more confidence will get infused to the bulls and if we are fortunate, we might witness $8000 before breaking below $7000.
In the coronavirus lockdown front, some good news is coming in from Austria as they have been successful in reducing the rate of their daily cases to ~2% from 40% and are also planning to ease the lockdown measures starting from 14th April. Many other countries are on the same page as Austria and we might get to hear some more positive news in the coming weeks. This news should have an impact on the price, so along with the Bitcoin chart, an eye should be kept on the coronavirus curve as well.
Currently, the Fibonacci pivot point on the 4hr chart is located at $6600 and the following twitter user believes that Bitcoin is going to retrace to that point in the next leg down. $6600 is important for swing traders because two other pivot points-Camarilla pivot and classic pivot are also coinciding with the $6600 support line.
From the above tweet, it is evident that Bitcoin is the only asset class that is on the positive side of the spectrum with 1.77% year to date gain according to wall street fellas.
The next piece comes from Steve Courtney, the founder of Crypto Crew University who rightly points out that Bitcoin is in a downtrend for the past 852 days in the 1M timeframe. If it cannot break the trendline by painting a full candle above $10,500 then this rally will be considered to be a dead-cat bounce and we will continue the downtrend further.
Also another important point he makes about a 3-day death cross which will be imminent if Bitcoin fails its attempt to cross $10,500 range. A similar 3-day death cross(between 200EMA & 50 EMA) happened during the DEC,2018 crash which took BTC to $3100 in early 2019. If this happens then we might expect to see Bitcoin in the low $5000s.
Temporarily moving our focus from BTC to alties, the tweet below is very important for altcoin traders as it might signal a new bull run. For the past year(since 14th FEB, 2019) bitcoin dominance which was on an uptrend, was broken yesterday. At the same time, Ethereum along with some other promising altcoins are showing strong upward momentum, although we would require more time and evidence to confirm the resumption of ALT bull run.
If you are new to the Bitcoin world and considering buying your first BTCs, we would advise going through this link to find the cheapest exchanges to buy Bitcoins. Even if you’ve bought Bitcoins earlier you might consider reading it as the Redditors have put together a stellar(not the altcoin) list.
The following section will be interesting for those of you who are holding a bag full of BTCs and thinking of off-loading it during the next bull cycle. If that is you, be sure to bookmark this post for future references.
Another brilliant insight coming in from Reddit. Many of you might have considered buying index fund tokens in place of Bitcoins. This user explains comprehensively how his portfolio of top ten cryptos has performed over the year. Give it a full read, you won’t regret it.
Yesterday we had discussed how Bitcoin is forming a rising wedge, the below trading view post provides more insight into how we can predict a trend reversal inside the rising wedge. As we can see from the image below, Bitcoin has printed a bearish Pin Bar candle on the 4hr chart which is considered a bearish pattern when preceded by an upward trend or when the market is overbought or is at a point of resistance. When a Bearish Pin Bar candlestick pattern is identified after a bullish move, it can signal a reversal in the price action. Many investors use it to catch the top of a rising wedge.
https://www.tradingview.com/chart/BTCUSD/USRLXhre-BTCUSD-Increasing-Possibility-of-a-45-Drop/
In case you are bullish with Bitcoin’s current price action, the below image shows the levels where you might opt to buy. These are Bitcoin’s resistance levels which might turn into supports once broken.
The following post is a clear example of how traders trade Bitcoin based on the price action of other top altcoins.
In the following post, the author had predicted a correction on the downward side to $7000 based on a huge sell wall at $7500 region. This price action has already taken place.
Now we need to see whether the author’s prediction of Bitcoin’s move to $7700 before the next corrective wave is true or not. The author expects Ethereum to appreciate in value by “10% on ETH/USD and +5% on ETH/BTC, which gives BTC a target of +5% which is exactly $7700”. The next few hours are crucial in telling us whether it is a viable trading strategy or not”.
Further Reading:
AAAanndd that’s a wrap! Stay healthy and trade safely until we meet tomorrow.
Also, don’t forget to share and subscribe to our newsletter!
