Bitcoin completes the second week after its surprising bullish action on 2nd April with comparative stability. The price of Bitcoin at 3: 30 hours UTC on 16th April 2019 is $5066. It is trading 2.33% lower on a daily scale. On the weekly scale, it is trading 2.2% lower.
Bitcoin still in ‘no-trade zone’
Commenting on the weekly chart, leading trading analyst Tone Vays mentioned that “we have seen rejection from the 50-Day moving average.” The chart is starting to squeeze in between the 200-day Moving Average and 50-Day Moving Average.
If that scenario plays out, Bitcoin would break continue consolidation around $4000 dollars until some time in September. Moreover, fundamentals must keep growing stronger for a bullish action even then.
The weekly chart also provides crucial information about market sentiments with the ‘Doji’ at play. The weekly opening is close to the weekly close. The range of the Doji was 0.59%. Hence, there is indecision in the market after a sharp bullish trend. If another Doji is formed this week, it will signify indecision has continued signaling a trend reversal towards the bear.
According to Vays, on the weekly sequential a break over the high of the Doji at $5470-$5490 is critical for bullish movement.
Daily Chart of Bitcoin
He also mentioned
“The Daily chart is bullish… and break above $5350 will solidify the bull signals.” However, he also said “we are still the no trade zone.”
The critical psychological levels for Bitcoin currently can be mapped in a parallel channel. A break above or below the channel will probably guide the market sentiments accordingly. The range lies between $4905 and $5350.
Moreover, the RSI on the daily chart has also dropped in the neutral zone between over-bought and over-sold region. The RSI on the weekly dropped further neutrally poised at 55.
Furthermore, the fundamentals around Bitcoin are mostly consistent with the developments and updates during last week. Hence, fundamentally nothing seems to have changed.
Do you think a bullish break out is imminent or the bears are still at play? Please share your views with us.
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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