A Surprising Bitcoin Surge
In a stunning twist that left many bears scratching their heads, Bitcoin’s price recently shot up by a hefty $1,200, hitting $8,700. And while most of the market was gripped with fear, those keen enough to read the signals were rewarded handsomely.
Market Sentiment: Fear and Flip-flops
It’s a classic case of expectation vs. reality. The crypto chatter was filled with dire predictions, suggesting imminent drops. But as they say in the trading world, when everyone zigs, it’s often best to zag. So what really caused this unexpected push upwards?
CME Gaps: The Trading Holy Grail
Traders often keep their eagle eyes peeled for CME gaps, which are like unattended snacks on a buffet line—too tempting to ignore. In Bitcoin’s case, a second gap lingered just above at $11,800. Closing these gaps is almost a trading rite of passage, with approximately 90% of them being filled before the market decides to party somewhere else.
- First Gap: Closed under a descending triangle.
- Second Gap: Closed perfectly, thank you very much!
- New High: Bakkt futures set a new record, with trades spiking by 653%.
Signals for a Potential Bottom
On the daily charts, signs of bullish divergence popped up like daisies on a sunny day. Bitcoin held firm at a support level of $7,400, echoing stability from June 2019. Historical patterns indicate that these bullish divergences often hint at possible bottoms—think of it as the cryptos’ rite of spring.
Weekly Insights: Riding the 100-WMA Wave
After a slippery drop, Bitcoin managed to reclaim its position above the 100-week moving average (WMA). This moving average isn’t just a line on the chart; it’s a psychological indicator that traders watch closely.
The Big Picture: Market Cap at a Crossroads
The total cryptocurrency market capitalization is at a nail-biting junction, teetering between support and resistance. If it can hold its ground between $180 billion and $205 billion, it could signal a bullish trend ahead. Historically, this area has been a key player in prior bounces, so all eyes are on this critical level.
BTC: Key Levels Moving Forward
With all this excitement, it seems Bitcoin may have cleared the initial hurdle. Still, it’s got to overcome some technical barriers for a sustained bullish gale. To truly fly, Bitcoin needs to wave hello to:
- Close the weekly candle above the $7,800 WMA.
- Break through the 200-day moving averages at $8,600 and $8,750.
- Finally, flip the $9,200 resistance back to support and watch Bitcoin take off!
With the halving event looming in May 2020, the anticipation adds an extra layer of excitement. But remember, dear reader, it’s all fun and games until someone loses their investment. Always do your due diligence.
