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Bitcoin: a necessary pause for sustainable growth | CryptoNews



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After an impressive event since mid-February, which brought Bitcoin (BTC) to trading 177% above annual declines in December 2018, it seems that the main market capitalization crypt seems to exhaust its momentum upwards. This means less certainty about the possibility that the BTC exceeds the $ 9,000 barrier without initially making a local minimum in areas of greater liquidity for purchases, such as the range between $ 6,600 and $ 7,000.

BTC's spot prices are on the rise since April, when the cryptowatch prompted prices from $ 5,000 to $ 9,000. Institutional demand, the US and China trade war, and potential Chinese capital, they could be the main factors in buying pressure who took this price to such extreme.

However, as the crypts continued to increase, there was a need for a move away. Reduction of movement or better-known corrections allow prices to be oxygenated, search for support points in historical supportand collect enough force for the next impulse.

In the next graph, we notice how the price of the buyer's pulse was lowered. As the price in its career rose to $ 9,000, green candles became smaller and with a greater degree of indecision. The breakdown of the parable, accompanied by a red candle with volume, as shown in the graph, is what operators want to define the end of enlargement and the start of shrinkage.

Starting the BTC starting from 2019, it stopped.

In the same way, Ichimoku's cloud can be interpreted with dual configurations for more precise signals. In the weekly season, Bitcoin continued to be a prediction bubble but with a high probability of reaching $ 10,000. However, for such trends, Kijun (red line) and Tenkan (blue line) are close to price action. When this distance is greatly increased, the likelihood of over-purchase and return to its center (kijun) is considerably increased. During a period of strong growth, Kijun will act as the starting point for establishing points of potential regression.

Currently, the kijun is close to 6,600 USD, which should act as a magnet for the price in the event of a downgrade. In this respect, the historical scale (horizontal columns) shows that any withdrawal from the price will find liquidity and should not exceed the range of $ 6,300 to $ 6,500.

In the lower daily chart, Ichimoku cloud metrics are still 100% bull: the price is above the cloud, the cloud is bullfighting, the kijun and the Tenkan cross bikini, and the delay interval is above the price and the cloud.

Break in the trend line of the relative strength index (RSI) (in the chart below) indicates the end of bullfighting. As indicated in the graph, RSI since December 2018 represents higher minimum values, On May 31, the trend line was interrupted, with the cursor correction being withdrawn. Although it has withdrawn to the lowest level in weeks, it remains in the bull's area (above point 50), so the momentum remains optimistic.

The Relative Power Index (RSI) (the graph below) shows higher falls until the trend was interrupted on May 31. Image: TradingView.com.

Lastly, in season 4H, the price action strongly supported the resistance and resistance. After the CME futures contract expired on May 31, it appears that the market has entered the boom of volatility leading to bitcoin a small lateralization between 7,500 and 8,250 USD.

In previous cases, a pause of $ 8,250 brought individual quantities to move the price above or below, so it can be expected that an interruption in this area will follow the same amount of purchases (current case)) witnessing an organic increase in assets.

Currently, bitcoin lateralization is between 7,500 and 8,250 USD. Image: TradingView.com

Although the trend is strong bullish, technical analyzes in longer time frames show signs of over-purchasing and falling-up conditions. At lower time movements, the price determines persisting patterns of continuation, indicating a more and more likely decline.

If we add a decrease in the Long vs Shorts to Bitfinex index of 1.0 (with its maximum of 1.55) and the falling rate of Bitmex funding over the past two weeks, the mood to sell may continue to slip. $ 6,600 and $ 7,000. Until the resistance of 8,000-8,250 USD is violated, the correction is most likely.

Warning: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias.

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