Hello Traders, Investors, And TradingView Community,
In this weekly BTC/USD analysis, we will be taking a brief look at the most recent events, current chart technical formations, as well as the possible BTC short-term price outcomes.
Overview
Bitcoin has spent the past week experiencing a long-awaited pullback, after which it started consolidating. The largest cryptocurrency by market cap has, after failing to break its all-time high, dropped significantly and reached as low as $16,200 before bears reached exhaustion. While some analysts are calling for an end of the pullback, most of the data shows otherwise. First off, the current controversy around China seizing 1% of all Bitcoin is contributing towards the overall bearish sentiment. Second, a poll done on crypto investors says that the majority of investors believe that BTC will end up correcting as much as 40%. All this, plus the fact that Bitcoin couldn't push past $17,260 for a couple of days now is a testament to the short-term bearish sentiment.
On the other hand, people shouldn't mistake this for a long-term bearish trend. In fact, Bitcoin has never been more bullish long-term.
Technical factors
Bitcoin has continued moving up and performed exactly what we called last week (a push towards the all-time high). Once again, as expected, the push didn't break the all-time high, and has triggered a strong pullback. Bears have reached exhaustion at just over $16,000 and Bitcoin has started consolidating in a range, bound by $17,260 (both horizontal resistance and a 100-period moving average) to the upside and $16,420 to the downside.
The hash ribbons indicator still shows a buy/accumulate signal as it points out to miner capitulation.
Likely Outcomes
Bitcoin's movement is a bit less obvious this week when compared to the past weeks. The cryptocurrency has a couple of scenarios it can play out as it leaves the current range-bound trading.
1: If Bitcoin breaks the range to the downside (slightly less likely), its most likely target will be $15,500. Due to the short-term bearish sentiment surrounding Bitcoin at the moment, a short trade doesn't have to be considered as "trading against the large trend" and may actually be a good profit-making opportunity.
In this case, a clear stop-loss should be set a little above $16,420.
2: The second (just slightly more likely) scenario happens if Bitcoin manages to break the $17,260 mark. In this case, the cryptocurrency can reach many targets, but will most likely pass the $17,600 immediate resistance, and push higher. The next zone of resistance after that is the $18,250-$18,450.
Trading Bitcoin's sideways action in a current range is not advised as the price could break out of it at any time.
Join us at our Forex Academy website and Facebook group for more Forex and Crypto news and education, as well as our FREE signal section where you can trade alongside us!
Information provided is only educational and should not be used to take action in the markets.
In this weekly BTC/USD analysis, we will be taking a brief look at the most recent events, current chart technical formations, as well as the possible BTC short-term price outcomes.
Overview
Bitcoin has spent the past week experiencing a long-awaited pullback, after which it started consolidating. The largest cryptocurrency by market cap has, after failing to break its all-time high, dropped significantly and reached as low as $16,200 before bears reached exhaustion. While some analysts are calling for an end of the pullback, most of the data shows otherwise. First off, the current controversy around China seizing 1% of all Bitcoin is contributing towards the overall bearish sentiment. Second, a poll done on crypto investors says that the majority of investors believe that BTC will end up correcting as much as 40%. All this, plus the fact that Bitcoin couldn't push past $17,260 for a couple of days now is a testament to the short-term bearish sentiment.
On the other hand, people shouldn't mistake this for a long-term bearish trend. In fact, Bitcoin has never been more bullish long-term.
Technical factors
Bitcoin has continued moving up and performed exactly what we called last week (a push towards the all-time high). Once again, as expected, the push didn't break the all-time high, and has triggered a strong pullback. Bears have reached exhaustion at just over $16,000 and Bitcoin has started consolidating in a range, bound by $17,260 (both horizontal resistance and a 100-period moving average) to the upside and $16,420 to the downside.
The hash ribbons indicator still shows a buy/accumulate signal as it points out to miner capitulation.
Likely Outcomes
Bitcoin's movement is a bit less obvious this week when compared to the past weeks. The cryptocurrency has a couple of scenarios it can play out as it leaves the current range-bound trading.
1: If Bitcoin breaks the range to the downside (slightly less likely), its most likely target will be $15,500. Due to the short-term bearish sentiment surrounding Bitcoin at the moment, a short trade doesn't have to be considered as "trading against the large trend" and may actually be a good profit-making opportunity.
In this case, a clear stop-loss should be set a little above $16,420.
2: The second (just slightly more likely) scenario happens if Bitcoin manages to break the $17,260 mark. In this case, the cryptocurrency can reach many targets, but will most likely pass the $17,600 immediate resistance, and push higher. The next zone of resistance after that is the $18,250-$18,450.
Trading Bitcoin's sideways action in a current range is not advised as the price could break out of it at any time.
Join us at our Forex Academy website and Facebook group for more Forex and Crypto news and education, as well as our FREE signal section where you can trade alongside us!
Information provided is only educational and should not be used to take action in the markets.