Bitcoin [BTC] is closed the week at $10,600, which acted as a positive indicator for traders. The price briefly broke towards $10,300, however, it closed at 10,600. This was essential as the death-cross that seems on the 4-hour chart is yet to yield. Moreover, if it doesn’t, Bitcoin could move higher in a continued bullish trend.
Sawcruhteez tweeted about this analysis,
I remain short term bullish as long as the price is above $10,600 on a closing basis (4h). If that breaks down then it would likely lead to the death cross on the 4h chart with the 50 and 200 EMA’s. Until then expect those EMA’s to be support. $
However, from long term trend analysis, he also suggested that a continual move up in the next few days could point towards a bearish move.
Tone Vays, derivatives trader and TA analyst noted that Bitcoin is currently giving mixed signals at the moment. According to him the 12-hour Chart is bullish and looking to break above $11,000. However, at the current sentiments from other charts point towards a possible reversal. Hence, the stop losses must be tight on a bullish trade.
The market sentiments are further aggravated by activity on the Blockchain and market capitalization of USD-Tether. The increasing market capitalization of USDT has been a strong indicator of bitcoin’s bullish trend. It is at an All-Time high at the moment.
Furthermore, yesterday crypto-markets also witnessed significant what activity on Bitcoin. 5000 BTC was moved from unknown wallet to Bitstamp. This set off bearish alarms as a sell-off was suspected. Dovey Wan, crypto-analyst and trader, tweeted about the transfer,
Last time cost only 2000 BTC for that dump from 8k to 6k if memory serves
Nevertheless, the transaction seemed to be reversed soon as well with 5000 BTC transferred from the Exchange again.
Bitcoin’s parabolic move this year has correlated closely with the rising USDT Mcap. While last week, there was a surge in Bitcoin prices along with the Mcap of USDT. The weekend saw a declining of the Mcap which alerted some traders of the price. B.Biddles, tweeted about the recent bounce from $10,300 t0 10,600,
“I don’t trust this pump… Price is going up, $ market cap is going down. Whales are taking profit on the market imo.”
The bitcoin market has resisted the bearish movements with a reversal at critical points. However, the parabolic move has still kept the traders on a bearish edge.
Do you think that Tether Mcap is a strong indicator of Bitcoin price? 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