As we venture into the last stretch of 2019, Bitcoin enthusiasts are chewing their nails and tossing coins in the air, pondering whether the cryptocurrency king will take a victorious leap or trip into a yearly pit. Buckle up as we dissect the potent bullish signs lurking beneath the bearish surface.
Bullish Signs in a Bearish World
Initially, the Bitcoin daily chart had traders gnashing their teeth, presenting a bearish streak since early November. Multiple attempts to claw past the $9,500 threshold fell flat, culminating in a crash that saw Bitcoin tumble to around $6,500 on November 25. But fear not! As the saying goes, what goes down must bounce back up. And bounce it did—over $1,300 worth from the low, shifting the daily trend back to a bullish vibe.
The Magic of Moving Averages
Examining the Bollinger Bands (BB) indicator, Bitcoin’s next milestone appears to be the moving average sitting at $8,000. Should we break through this barrier, eyes are set on the enticing low $9,000 range. Remember, it’s not just about breaking—it’s about breaking with style!
MACD to the Rescue
Let’s add another feather to our bullish cap: the Moving Average Divergence Convergence (MACD) indicator is giving strong hints of a bullish cross on the horizon. When the daily candle closes, the first green candle on the MACD histogram will wave its flag, signaling traders that a buying opportunity is ripe for the taking. Fancy that—a little glimmer of hope!
CME Gap Dynamics
On November 29, the Bitcoin CME gap closed at $7,800, whilst Bitcoin has been hanging around the $7,300 mark. If history repeats itself, a gap-fill could mean a delightful 7% surge in Bitcoin’s price. And you know what they say about bull markets—once they get rolling, they’re hard to stop!
RSI: The Indicator with Flair
What’s more? The weekly Relative Strength Index (RSI) is showing signs of being heavily oversold. Once upon a time on November 25, the RSI dropped to 17.65, and now it hovers around the mid-30s. A reading close to 30 often sends a clear buying signal. So, should we put on our bullhorns? Perhaps!
Weekly Chart Insights
Despite some bearish nuances on the weekly chart, with the MACD line pointing downwards, it’s essential to keep our eyes peeled for the trends unfolding. Many traders might perceive the broken support as a warning sign, while others dance in anticipation of a turnaround. It’s like a true drama series—will the bears claim victory, or will the bulls make a comeback?
The Best and Worst-Case Scenarios
Ultimately, the landscape remains uncertain yet intriguing. The bearish scenario looms with price nearing crucial support levels on the monthly chart; if Bitcoin dips below $6,900, we might be staring into the abyss of a $2,750 price point. But on the flip side, with potential bullish signals from the MACD and a gap fill to $7,800, we could witness Bitcoin settling into a comfortable new support level while eyeing resistance around $9,050.
In essence, as Bitcoin folks gather their popcorn, the stage is set. Will Bitcoin finish the year with fireworks or flop like a poorly executed movie ending? Only time will tell, but hey—at least it’s never dull!
+ There are no comments
Add yours