Bitcoin Price Analysis: BTC/USD Larger Correction or Bullish Continuation? (Bitcoinerx)
Bitcoin still seems to be in correction mode but is already forming bullish candles at the 50% level. A continuation of the climb could make it until the next upside targets marked by the Fib extension tool.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the climb is more likely to gain traction than to reverse. The gap between the indicators is widening to reflect stronger bullish momentum, and the 100 SMA lines up with a longer-term rising trend line to add to its strength as support.
If the 50% level around $11,000 is enough to keep losses in check, the price could resume the climb to the Fib extension levels. The swing high lines up with the 50% extension at $14,000 while the 61.8% level is at $14,636. Stronger bullish momentum could take it up to the 78.6% level at $15,727 or the full extension at $17,116.
RSI is still heading lower, though, so there may be some bearish pressure in play. This oscillator has yet to cross below the center line to show that selling pressure has yet to pick up. Similarly stochastic is heading south so the price could follow suit while bears are in control. This could yield a larger pullback to the 61.8% Fib at $9,905 or the trend line closer to $9,000. BTC/USD Chart – TradingViewInterest in bitcoin has skyrocketed along with its price after the Facebook Libra announcement. This drew market attention back to cryptocurrencies, particularly those that have proven their success in the longer run, like bitcoin and ethereum.
This also supported expectations of a bullish month for bitcoin in June, but it remains to be seen if the momentum can be sustained. Some factors that could keep this longer-term climb up might be an increase in institutional investment and speculations for the “halvening” in May next year.
Images courtesy of TradingView
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