Bitcoin price is making its best attempt yet to climb back above $40,000 since the big crash in May. Thus far, the phrase “sell in May and go away” has worked like a charm, and it could take longer before buying coins back again is a profitable strategy.
That’s because the top cryptocurrency is struggling to hold above the middle-Bollinger Band, and if it can’t hold, it could result in another retest of the bottom of the band. Another retest could finally push the price per <a class="wpg-linkify wpg-tooltip" title="
A coin is a unit of digital value. When describing cryptocurrencies
, they are built using the bitcoin technology and have no other value unlike tokens which have the potential of software being built with them.
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” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin below support, making a clean sweep before a reversal.
Deja Vu: Why A Historic Move Could Be On The Horizon
For anyone who was around the crypto market during 2019, it feels like deja vu. At above $10,000, it wasn’t uncommon to see traders claiming the next stop was $100,000 or more. They were wrong, and Bitcoin crashed.
When it did, and sentiment shifted bearish, the cryptocurrency reversed with the third most profitable day on record. Anyone familiar with the October 2019 “China pump” knows that things can turn around fast, even when they seem at their worst.
Related Reading | Time To Pay Attention: Bitcoin Indicator Behavior Mimics Historic Rally
Indicators are primed in the same way and so is sentiment, and the latest rally following a morning star reversal and dragonfly doji serve up plenty of bullish signals.
Why then, are the Bollinger Bands warning of one more potential collapse – matching the China pump a lot more closely than the current price action.
Could Bitcoin sweep lows one more time? | Source: BTCUSD on TradingView.com
Bitcoin Price Could Slingshot Lower Before A Bounce Back To Highs
The Bollinger Bands created by John Bollinger are a versatile technical analysis tool that measures volatility, highlights support and resistance, and much more. When the bands tighten or squeeze, it is a sign a massive move is coming ahead, and so far the tool is signaling something shocking should soon happen. But when?
Related Reading | Bitcoin Daily Dragonfly Doji Gives Bulls Hope Of Sharp Reversal
Not quite yet, if the middle-Bollinger Band – a simple moving average – is lost as support. During the prelude to the historic China pump, the middle-BB was lost not once but twice.
Indicators also match the last time Bitcoin got so confusing | Source: BTCUSD on TradingView.com
Bollinger Band Width is at similar lows, but should hang there a while long. BB% could sweep the current low like it did in 2019 before slingshotting back upward.
Finally, the LMACD is also exhibiting a very similar pattern and if another bearish crossover happens, it could be a massive trap like the last time around. But for now, beware of one more sweep of lows before a reversal.
Featured image from Deposit Photos, Charts from TradingView.com
Bitcoin price extended its upward move above the $37,500 resistance against the US Dollar. BTC failed to clear $38,500 and it is now correcting lower.
- Bitcoin traded above $38,000, but it failed to continue higher above $38,500.
- The price is currently well above $35,000 and the 100 hourly simple moving average.
- There was a break below a key bullish trend line with support near $36,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could extend its decline, but the bulls are likely to remain active near $35,000.
Bitcoin Price Correcting Gains
Bitcoin settled well above the $35,000 and extended its upward move. BTC even broke the $37,500 resistance, but the bulls failed to gain strength for a break of the $38,500 hurdle.
A high was formed near $38,425 and the price is now moving lower. It broke the $37,000 support level to start the current correction. There was a break below the 23.6% Fib retracement level of the upward wave from the $31,052 swing low to $38,423 high.
Besides, there was a break below a key bullish trend line with support near $36,500 on the hourly chart of the BTC/USD pair. However, the pair is still well above $35,000 and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
On the upside, an initial resistance is near the $37,000 level. The first major resistance is near the $37,500 level, above which the price likely to revisit the $38,500 resistance zone in the near term. The main resistance is still near the $40,000 level.
Dips Supported in BTC?
If bitcoin fails to clear the $37,500 resistance, it could extend its decline. An initial support on the downside is near the $36,000 level.
The first major support is near the $35,500 level. The main support is now forming near the $35,000 level and the 100 hourly SMA. It is close to the 50% Fib retracement level of the upward wave from the $31,052 swing low to $38,423 high. A downside break below the $35,000 support zone could push the price back into a bearish zone.
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $36,000, followed by $35,000.
Major Resistance Levels – $37,500, $38,500 and $40,000.
Bitcoin price extended its decline below the $33,000 support zone against the US Dollar. BTC is currently recovering and it must stay above $30,000 to avoid a larger decline.
- Bitcoin extended its decline below the $33,500 and $33,000 support levels.
- The price is currently well below $35,000 and the 100 hourly simple moving average.
- There is a key rising channel forming with support near $32,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a fresh decline if there is a break below $32,300 and $32,000.
Bitcoin Price is Under Pressure
Bitcoin remained in a bearish zone below the $35,500 support zone and extended its decline. BTC broke the $33,500 support level and settled below the 100 hourly simple moving average.
The price even declined below the $32,000 support zone. A low was formed near $31,065 before the price started an upside correction. There was a break above the $32,000 and $32,500 levels. The price climbed above the 23.6% Fib retracement level of the recent decline from the $36,820 swing high to $31,065 low.
However, the price is facing a strong resistance near the $34,000 level. It seems like the 50% Fib retracement level of the recent decline from the $36,820 swing high to $31,065 low is acting as a hurdle.
Source: BTCUSD on TradingView.com
There is also a key rising channel forming with support near $32,300 on the hourly chart of the BTC/USD pair. The first major resistance is near the $33,500 level. The main resistance is near the $34,000 zone, above which the price could test the 100 hourly simple moving average.
More Losses in BTC?
If bitcoin fails to clear the $34,000 resistance, it could continue to move down. An initial support on the downside is near the $32,500 level.
The first major support is near the $32,300 level and the channel trend line. If there is a downside break below the channel support, the price could dive to $31,000. The main support is near the $30,000 level. If the bulls fail to protect the $30,000 support zone, there is a risk of a sharp decline.
Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Major Support Levels – $32,300, followed by $31,000.
Major Resistance Levels – $33,500, $34,000 and $35,000.
Max Keiser put forward his case for BTC during an interview at Bitcoin Miami. In doing so, the controversial broadcaster displayed a level of enthusiasm that raised one or two eyebrows from attendees and drew dissenting comments from social media.
Keiser Goes Off The Wall
Speaking with CNBC Africa, long-time Bitcoin advocate Keiser explained the fiat versus BTC argument by tearing up a $10 bill while explaining all fiat currencies are going to zero against Bitcoin.
“Here’s a ten dollar bill, this is gargage. Your people in South Africa, you have your rand, right? That’s going to zero. This is going to zero too, euros are going to zero, the yen is going to zero, the Chinese currency is going to zero. It’s all going to zero against Bitcoin.”
He added that those who don’t understand this would face a life of impoverishment when this happens.
When the interviewer said currency defacement is a criminal offense, Keiser launched into a tirade about political corruption. He said he who holds the Bitcoin makes the laws while adding that his BTC wealth will buy any politician.
“Do you know that with the Bitcoin I have I can buy any frickin senator or congressman I want? I make the laws. He who has the Bitcoin makes the laws Ran. We’re not just going to sit around and let the God damn government tell us what to do…”
Commenting on the clip, Input Output Global CEO Charles Hoskinson replied with a gif from the 1983 Scarface movie showing the lead character, Tony Montana, taking cocaine.
Although Keiser is known for his eccentric behavior and straight taking, some have questioned whether this interview has done more harm than good for the image of Bitcoin.
Bitcoin Miami 2021
After a year of virtual conferences due to lockdown restrictions, Bitcoin Miami 2021 is the first major blockchain event to allow attendees.
Miami Mayor Francis Suarez, who has carved out a pro-crypto reputation with his plans to make Miami a Bitcoin hub, opened the event saying, “This is not a moment. This is a movement.”
The event was initially set to be hosted by Los Angeles on April 30. But the uncertainty of the COVID restrictions forced organizers to look elsewhere, with Miami benefiting as a result.
Organizers estimate the three-day event will draw over 50,000 attendees as they come together to discuss the leading cryptocurrency and where it’s headed.
Several prominent crypto figures have attended, including Jack Dorsey, Michael Saylor, Ron Paul, and Nick Szabo.
The event has been accused of promoting BTC maximalism, with some commentators even drawing parallels with Bitconnect’s infamous event featuring Carlos Matos.
During Keiser’s segment on Friday, in front of a roaring crowd, the controversial broadcaster yelled, “we’re not done, we’re not done, f*ck Elon, f*ck Elon,” before hugging Michael Saylor.
Elon Musk has drawn the anger of cryptocurrency enthusiasts for his U-turn on Bitcoin.
Source: BTCUSD on TradingView.com