Must Read this Before Opening a Bitcoin Long Position
Bitcoin makes a new all-time high of 2019. The price of Bitcoin touched $5650 and now trading above $5500. Everyone is talking about bull is back and Bitcoin will see a rally soon. If you are looking to open a Bitcoin long position, you should read this post that will help to make a decision. Here is the full technical analysis of Bitcoin for short to long term.
Here we are comparing the current Bitcoin bear market with the previous bear market of 2014-2015. The golden cross of Bitcoin will happen in the next two days. When the 50 MA (Moving Average) cross the 200 MA upside this is called a Golden cross.
The golden cross is known as a very bullish sign for any market. As it will happen in Bitcoin this week many people start predicting that we will see a Bitcoin bull rally soon.
Here is the truth that only a few are talking now. For an organic growth Bitcoin should test the $4000 zone.
Here is the comparison of the daily chart of the current market and 2014-2015 market. On the left side, the chart is showing the current market scenario and on the right, the chart is showing the bottom of 2015 market (from where the bull market start).
First talk about the past (2015 market), you can see in the chart that after the price dumped hard, price surge above the 50 MA (orange line) then cross the 200 MA (Purple Line), the rally continues until price met the resistance 50 EMA weekly (Black line) and sharp dump that makes a double bottom.
The Important things to look here are:
- The peak of the move happened exactly as the golden cross
- Price fell below the 50 MA and the 200 MA
- Price tested the 0.786 fib levels
- Price hadn’t tested the weekly 50 EMA for 241 days
- The RSI reached slightly over 80
Comparing this with the current scenario, the situation is almost the same. Price dumped hard from $6100 to $3100 and then cross the 50 MA and 200 MA. Now the price is at 50 EMA (weekly) and it looks like that Bitcoin is losing the pace and fell from there. The Golden cross will happen exactly on the top and RSI is now above 75.
The 0.786 Fib levels are now around $3800 and 0.618 level is $4000. The biggest resistance, for now, is $6000 it took months to break the $6000 levels back in 2018, and it takes months of testing to break above $6000. People who think we are just going to skyrocket above that major resistance around 6000 are delusional.
There is still room for upward movement but that is small. Bulls are exhausted and need to pull back for further movement.
If you are looking to open Bitcoin long positions, you should wait for the $4000-$4500 zones. Always remember one rule in trading “Trend is your Friend“. The bitcoin market is still in a downtrend. The 200 MA (on the daily chart ) is still going downwards and takes time to turn it upward.
Bitcoin is now in accumulation zone as per the charts and a report published by digital asset fund Adamant Capital. Bitcoin will enter into the bull market in Q4 of 2019 and this is the biggest bull run of crypto history. Mass adoption and fiat inflation rate are the major components of the next Bitcoin bull run.
Source: MagicPoopCannon
This information is not a recommendation to buy or sell. This is for educational purposes only. Bitcoinik is not responsible for any profit/loss.
If you are a trader this is a good opportunity for short Bitcoin and make some good money (maybe this will end the wrong way). If you are hodler, Hold it tight let the wave passes and when you see the ground it is full of Money. The Change is coming and we are part of it.
