After a week of consolidation Bitcoin again starts to gain some pace. Bitcoin is now trading at $5670 (at the time of publishing). Bitcoin has made a new high of 2019 and touched $5800 after the dump of Bitcoin Cash (BCH) hardfork. The momentum pushed total marketcap to $185 Billion.
Bitcoin has gained more than 6 percent today and top cryptocurrencies showing small gains. Bitcoin is now facing heavy resistance zone $5800-$6000 and the market will see a pullback there.
The overall market sentiment is bullish. Let’s talk about the charts now. Check here the full technical analysis.
Bitcoin is now in the upward pitchfork and seems that it will breakout either side soon. The possibility to break downward is high because of heavy selling around $6000.
Fibonacci 0.786 level is at $5822 which makes that $5800-$6000 resistance zone more stronger. If bulls are able to break these zones the next target should be $6200.
The major support for Bitcoin is $3800-$4000. The Fibonacci 0.236 level is around $3950 which makes it more stronger support.
RSI (Relative Strength Index) is again in overbought zones and a pullback is necessary for further growth.
Here are few scenario’s that are possibly to follow:
- Bitcoin will continue to rise and test the major resistance of $6000
- A small pullback to $5100-$5300 and again try to break the resistance
- The market will hit hard by the bears and we see a hard dump to $3800-$4000
Bitcoin bulls are trying very hard to push the price higher. Bitcoin is now at resistance, Altcoins are at support (bottom), Bitcoin dominance at resistance. It’s interesting to see what breaks up and what breaks down.
Altcoins will drop more with Bitcoin next move. Use stop loss in every trade and try to avoid new positions in Alts now.
Technical Analysis (TA) just give you a view that what will happen next. If you are looking to open a short/long position you should research more about the market sentiments, volume and fundamental analysis.