Category: Analysis

  • Bitcoin Accumulation Patterns Shows Rally Might Only Be In Its Early Stages

    Bitcoin Accumulation Patterns Shows Rally Might Only Be In Its Early Stages

    Bitcoin accumulation patterns continue to point to the fact that the recent rally might not be ending anytime soon. Investors have continued to hoard assets as the volume of bitcoins sent to exchanges to be sold off or traded falls below the accumulation rate.

    Outflows from exchanges have continued to exceed inflows into exchanges. Signaling accumulation patterns rather than sell patterns.

    Related Reading | On-Chain Expert Predicts $162K Bitcoin Peak This Cycle

    Wednesday saw the price of bitcoin dropping below $38,000 to be trading in the $37,000 range. Inflows of 11.3K BTC to exchanges correlated with this drop in price. But then the next two hours following this price dip saw more outflows of bitcoins from exchanges. 19.3K BTC were removed in the next two hours following the price dip. Showing investors were accumulating their coins rather than selling.

    Exchange Reserve Volumes Continue to Plummet

    Outflows from exchanges to personal wallets for safekeeping continue to be on the rise. Bitcoin exchange reserve volumes have seen decreasing numbers following the price crash from the all-time high, and the number has continued to go down. More coins leaving the exchanges than coming in shows that there is currently no selling pressure. Thus, accumulation is the order of the day as investors try to get their hands on as many coins as they can.

    Related Reading | Bitcoin Set To Outperform In Second Half Of 2021, Bloomberg Analyst

    Just over a week ago, a report from CryptoQuant showed that the volume of BTC currently held on exchanges dropped over 100K in just the span of two days. Numbers like these often indicate that there is significant buy pressure in the market. And buy pressures usually lead to accumulation, which in turn drives the value of the asset higher.

    Top exchanges continue to see large volumes of BTC leaving their exchanges on the daily. Centralized exchanges like Binance and Coinbase have seen the highest number of Bitcoins moved out of their exchange.

    Related Reading | Bitcoin To Surpass $120,000 In A Year, Says Pantera CEO

    Investors continue to see the merit in investing in cryptocurrencies like BTC. Indicators show that general market sentiment continues to buy and hold. So, these investors are going to continue to buy as many bitcoins as they can, and hold these coins in wait for bull rallies.

    Bitcoin Continues To Move Forward

    Bitcoin continues to see favorable outlooks despite the price taking hits in the market. Following El Salvador’s lead, as they make BTC a legal tender, Uruguay recently proposed a bill to also make the cryptocurrency legal tender in the country.

    Megabanks JP Morgan and Wells Fargo have both announced that their high-net-worth clients would have access to investment options that would provide them exposure to the crypto market. Hopefully leading to the opening of these investment options to the rest of the general public.

    BTC price close to testing $41K resistance point | Source: BTCUSD on TradingView.com

    Market analysts continue to see bullish movements in the price of the asset. With on-chain data analysis showing that daily transaction volumes are up following the recent price rally.

    With so many bullish indicators, it is no stretch to think that the rally might just be beginning. Bitcoin still may be able to break $50K before the year runs out if these indicators are anything to go by.

    Featured image from Flickr, chart from TradingView.com

  • Five Bullish Monthly Charts That Suggest Bitcoin Will Blast Off

    Five Bullish Monthly Charts That Suggest Bitcoin Will Blast Off

    Tomorrow is the last day of the month of July, and Bitcoin is at a pivotal moment in its lifetime. The crossroads of a possible bear market or bullish continuation is here, and the path chosen will dictate the trend for potentially months or years to come.

    The monthly timeframe could provide clues as to what might be next, and we’ve got five ultra bullish technical charts and reasons why Bitcoin is more likely to blast off than fall further from here.

    Critical Monthly Close Could Determine Crypto Cycle Crossroads

    Bitcoin is back at around $40,000 after a long drawn out and dramatic fall to $30,000. Each sweep below the support level was bought up, but resistance above also has yet to crack. 

    The reason for the stalemate between the two levels, is because price action on monthly timeframes is trapped between the Tenkan-sen and Kijun-sen. The last bear market was kicked off by losing such level. The monthly candle is also holding at support, which is something that failed to happen in early 2018.

    The Ichimoku is currently bullish on the top cryptocurrency | Source: BTCUSD on TradingView.com

    The two smaller bodied candles from June and July appear similar in structure as the pair that set the bear market bottom around $3,000 and has never yet been broken.

    Related Reading | Ready To Run: Bitcoin Forms Best Performing Bull Market Bottoming Pattern

    The Japanese candlestick pattern is also forming just as Bitcoin price brushes up against a long-term parabolic curve. A similar sized move up from the 2018 bottom might resembled the measured target from here.

    bitcoin candlesticks parabolic curve

    Candle structure matches the bear market bottom | Source: BTCUSD on TradingView.com

    Although the below chart demonstrates the TD sequential indicator at a red 2-count, which would suggest any downtrend is in its early stages (compare to past counts for examples). But in bulls favor, support has fallen back to where a TD 9 count was previously broken on the high timeframe.

    bitcoin TD

    Support is holding where the trend became interesting | Source: BTCUSD on TradingView.com

    Bitcoin Bull Stampede Could Be Brewing, According To Technicals

    The bullish signals on the monthly timeframe simply just don’t stop there. Bitcoin price has plenty more to suggest the bull run is nowhere yet finished.

    The next signal is from the Relative Strength Index, which suggests that although Bitcoin got overheated very quickly during this last impulse, the bull run would barely be a whimper compared to the last rally.

    bitcoin rsiRSI support is holding | Source: BTCUSD on TradingView.com

    The RSI is holding at a level that prompted that last major bull market of 2017, and has begun to turn back higher. If the same reading is taken from the point of support during the last bull market, the RSI suggests there’s a lot more room for bulls to run this cycle.

    Related Reading | Bitcoin Indicator Forecast Calls For $46K, New All-Time Highs Possible

    Finally, there’s the LMACD, which is narrowly escaping a bearish crossover.

    lmacd

    There’s no bearish crossover… yet | Source: BTCUSD on TradingView.com

    The LMACD is the logarithmic version of the moving average convergence divergence indicator, and is better suited for use with Bitcoin. Past bear crosses on the monthly timeframe led to extended downtrends, while narrowly crossing in late 2020 led Bitcoin’s charge to $60,000 per coin.

    All of the charts combined suggest that any bearish action on lower timeframes, was nothing more than a shakeout of epic proportions. However, only time will tell, and there is still more than 24 hours left before the clearly critical monthly candle comes to a dramatic close.

    Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.

    Featured image from iStockPhoto, Charts from TradingView.com

  • Ethereum Recovers Sharply, Why ETH Could Continue Higher above K

    Ethereum Recovers Sharply, Why ETH Could Continue Higher above $2K

    Ethereum started an upside correction above the $1,850 resistance against the US Dollar. ETH price is likely to continue higher if there is a close above the $2,000 resistance.

    • Ethereum started a decent upward move above the $1,850 and $1,950 resistance levels.
    • The price is now trading well above $1,900 and the 100 hourly simple moving average.
    • There is a key bullish trend line forming with support near $1,960 on the hourly chart of ETH/USD (data feed via Kraken).
    • The pair is likely to rise further if there is a proper close above the $2,000 resistance zone.

    Ethereum Price Starts Decent Increase

    Ethereum formed a decent support base above the $1,720 level, similar to bitcoin. As a result, ETH price started a steady increase above the $1,800 and $1,850 resistance levels.

    There was also a close above the $1,900 level and the 100 hourly simple moving average. Ether price even spiked above the $2,000 resistance, but there was no proper close. A high was formed near $2,033 and the price is now correcting gains.

    There was a break below the $2,000 level. It even tested the 23.6% Fib retracement level of the upward move from the $1,755 swing low to $2,033 high.

    Source: ETHUSD on TradingView.com

    On the upside, an initial resistance is near the $2,000 level. To move further into a positive zone, the price must settle above the $2,000 and $2,020 resistance levels. The next major barrier for the bulls could be near the $2,050 level, followed by $2,100. Any more gains might call for a test of $2,200.

    Dips Limited in ETH?

    If Ethereum fails to continue higher above $2,000 and $2,020, it could start a downside correction. An initial support on the downside is near the $1,970 level.

    The first major support is near the $1,920 level. The main support is now forming near the $1,900 level. It is close to the 50% Fib retracement level of the upward move from the $1,755 swing low to $2,033 high. Any more losses could set the pace for a drop towards the $1,850 support zone in the near term. The next major support sits near the $1,800 level.

    Technical Indicators

    Hourly MACDThe MACD for ETH/USD is now gaining pace in the bullish zone.

    Hourly RSIThe RSI for ETH/USD is now above the 60 level.

    Major Support Level – $1,900

    Major Resistance Level – $2,000

  • Bitcoin Surges To K, Why BTC Could Rally Further

    Bitcoin Surges To $40K, Why BTC Could Rally Further

    Bitcoin price started a strong upward move above the $35,000 resistance against the US Dollar. BTC is showing positive signs and it could rally further above $40,000.

    • Bitcoin started a strong increase above the $33,000 and $35,000 resistance levels.
    • The price is now trading well above $35,000 and the 100 hourly simple moving average.
    • There is a key bullish trend line forming with support near $35,500 with resistance near $31,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair could correct gains, but the bulls are likely to remain active near $37,000.

    Bitcoin Price Surges above $38,000

    Bitcoin price found a strong buying interest near the $32,000 zone. BTC formed a support base near the $32,000 and it started a major upward move.

    The price surged above the $32,000 and $35,500 resistance levels. There was a clear break above the $38,000 resistance level. The upward move gained strength and the price even traded close to the $40,000 resistance zone.

    A high was formed near $39,721 and the price is now correcting gains. It is trading near the 23.6% Fib retracement level of the recent rally from the $33,904 swing low to $39,723 high. Bitcoin is now trading well above $35,000 and the 100 hourly simple moving average.

    There is also a key bullish trend line forming with support near $35,500 with resistance near $31,250 on the hourly chart of the BTC/USD pair. It is showing a lot of positive signs near the $38,000 level. On the upside, an initial resistance is near the $39,000 level.

    Source: BTCUSD on TradingView.com

    The first major resistance is near the $39,500 level. The main resistance sits near $40,000. A successful break and close above the $40,000 level could initiate a fresh rally in the near term. In the stated case, the price is likely to move towards the $42,500 level in the near term.

    Dip Supported in BTC?

    If bitcoin fails to climb above the $39,500 and $40,000 resistance levels, it could start a downside correction. An initial support on the downside is near the $37,500 level.

    The first major support is now near the $36,800 zone. A clear downside break below the $36,800 support may possibly push the price towards the $36,000 support zone in the near term.

    Technical indicators:

    Hourly MACD – The MACD is now losing pace in the bullish zone.

    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well in the overbought zone.

    Major Support Levels – $37,500, followed by $36,800.

    Major Resistance Levels – $39,000, $39,500 and $40,000.