On Friday Bitcoin rallied a little over 6% and the rapid move above the $5,488 resistance has turned analysts like Peter Brandt and Murad Mahmudov bullish on the largest digital asset. Will BTC tackle $6,000 next?
Bitcoin Price: Market Overview
Things are looking up for Bitcoin price [coin_price]. Surprisingly the Tether – Bitfinex debacle appears to have had a limited impact on the bullish sentiment present in the crypto market and Bitcoin is now up 51% from its 2018 low.
At the moment it seems everyone from the world of institutional finance like Fidelity Investments, the Intercontinental Exchange (ICE) to analysts like Barry Silbert, Tom Lee and Peter Brandt are labeling Bitcoin’s current price action as indicative of a bull market. Let’s take a quick glance at the charts to see what’s going on.
Weekly Chart
The 12 and 26 EMA are on the verge of pulling off a bull cross on the weekly time frame for the first time since early October 2015 and the Bitfinex premium has already pushed BTC price above $6,000. BTC’s most recent move brought the digital asset above the 55 EMA and a glance at the daily chart shows BTC set a higher high today.
Looking back to mid- November 2018 when BTC surprisingly dropped from $7,300, there is little overhead resistance from $6,300 so barring bears setting up a wall of shorts at $6,000 and $6,3000 BTC, and assuming demand remands healthy, Bitcoin could pull of a blue sky breakout to $7,300 over the coming weeks.
4-Hour Chart
Since March BTC has successfully rallied off the successive inverse head and shoulder formations and today’s move above the $5,488 neckline supported BTC’s move to $5,750 on Coinbase.
The MACD is reaching into overbought territory, as is the RSI but it should be noted that powerful upside moves from BTC often allow the RSI to linger deep in overbought territory so trading decisions shouldn’t be based solely off an RSI reading.
The gap (lack of support/resistance) between $5,500 and $6,350 could soon be exploited by bulls and after setting a higher high Bitcoin will retrace some traders gather profit and a brief period of consolidation should occur before BTC makes another run at $6,000.
$5,620 and $5,500 (12-EMA) appear to be interim supports and a drop below $5,400 could represent a decent purchasing opportunity.
BTC-USD Shorts
Traders are advised to keep an eye on BTC-USD shorts chart and MACD on the daily and 4-hour chart. Over the past week, BTC-USD shorts rose about 20 percent as the Tether – Bitfinex scandal took its toll on BTC price and many analysts have also documented the capital outflow from Bitfinex as cautious traders look to exit the scandal-ridden exchange. As always, there is the possibility of a short squeeze which could help propel BTC well above $6,000.
Do you think Bitcoin will tackle $6k over the weekend?
[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for the analysis are provided by TradingView.]
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Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase.