In the midst of political and economic tension between US and Iran, Bitcoin [BTC] price seems to have found a strong bullish edge. At the moment, the price has broken above all resistances preparing the bulls for further action.
Leading chart analyst and derivatives trader, Peter Brandt, lists four criteria for the confirmation of the beginning of a bull. First is Bitcoin [BTC] bouncing back above the multi-year bullish channel.
Bitcoin [BTC] has gained 23.5% since whipsawing from lows around $6850. Price has gained over $1600 since then logging a high at $8465.
Secondly, formation of bullish patterns in Bitcoin charts which signal bullish strength. Brandt identifies the inverse head and shoulder pattern formation on the daily chart since November.
Third technical criteria is that the price breaks past the bearish descending channel. this morning it broke it above $7980 along with the 200-Day MA.
Has a new bull market began in #$?
1. Market held support at lower boundary of multi-yr channel
2. Small H&S bottom on daily chart
3. Pending penetration of 6+ mo channel
If enough crypto-cultists have been shaken out since Dec ’17, then “yes” If not, then “no”
Currently, the Technical Analysis point of view is favoring the bulls.
Is Your Answer Yes or No?
While the first three conditions have been met and verified on the charts, the last one is quite subjective. The term ‘crypto-cultist’ would extend not only to Bitcoin investors but altcoin believers as well.
Only recently, leading on-chain analyst, Willy Woo noted in an interview with Tone Vays that their is quite a bit of purging still left in many of these altcoins. He predicts that Bitcoin dominance would surge over 80% again. Currently, the dominance of Bitcoin is 69%; it shot up 1% since yesterday.
Nevertheless, some would even disagree with the crypto markets at large have undergone nearly 2 years of bears.
The RSI on the daily and charts on shorter time frames has shot up to the over-bought levels. The re-test of the descending channel and the 200-EMA at $8150 as support will be instrumental.
The price of Bitcoin [BTC] at 3: 48 hours on 8th January is $8322.
How bullish or bearish are you on Bitcoin and crypto-markets at this point? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com