CRYPTO NEWS

Early this week, analysts were expecting for Bitcoin to start to reverse lower. The cryptocurrency, after rallying for five weeks straight, was seemingly starting to top out, falling to $6,800 in a move that liquidated dozens of millions. But just days later, BTC pumped higher, liquidating $70 million worth of short positions on BitMEX due to cascading stop losses. This move brought Bitcoin to $7,800 and convinced analysts across the board that more upside is imminent.  Bears, however, may win in the end, with a crypto analyst noting that the cryptocurrency has just registered a “perfect” sell setup on a medium-term chart, suggesting an imminent reversal to the downside. Related Reading: Crypto Tidbits: Bitcoin Surges to $7,800, More U.S. Stimulus, Tether Erupts Bitcoin Price Signal May Predict An Imminent Reversal According to crypto trader “Moe,” the four-day chart of Bitcoin and Ethereum have just printed a harrowing sign as of April 26th: the Tom Demark Sequential — a time-based indicator that prints “9” candles near or at trend reversals — is forming a “9” candle on the current candle. This means that should the two cryptocurrencies close anywhere around the low to high-$7,000s, a “9” candle will be confirmed on the current four-day candle for BTC and ETH. Not only would this be a textbook sell signal, but a four-day “9” candle is also what predicted Bitcoin’s previous medium-term high in February at $1o,500. As Moe fittingly put it, it’s a “perfect sell setup.” Adding to this, another crypto trader identified that there exists a massive confluence of resistance above Bitcoin’s current price. He specifically pointed to the $7,900-8,100 zone as “very interesting,” drawing attention to the cluster of key technical levels in this region, suggesting it is a place at which bulls are likely to struggle. Key levels at that zone include but are not limited to: the 200-day exponential moving average and simple moving average, the 21-week exponential moving average, an order book resistance, the 61.8% Fibonacci Retracement, the top of a descending triangle, and the volume-weighted average price. It’s a confluence that adds to the “perfect sell setup” Moe mentioned. There is a Building Bullish Confluence Though Bulls seem to have a rapidly building case for upside though. For one, an analyst found that whenever Bitcoin posts six weekly candles of gains in a row as it is about to do, the candle that follows has been green 75% of the time. This would suggest that bulls still have momentum to take the cryptocurrency higher. Furthermore, as reported by NewsBTC previously, Nunya Bizniz, a Bitcoin chartist, observed that BTC’s recent price action has printed a textbook “BARR bottom.” It’s the same formation that marked the bottom in late-2018. Related Reading: No, Kim Jong Un’s “Vegetative State” Won’t Cause a Bitcoin Crash Photo by Marc-Olivier Jodoin on Unsplash

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