Crypto Analysis | BTCUSD Will the Momentum Hold?
Good day Steemians!
Join me in analyzing the crypto markets!
Since new year the crypto markets have been going up quite a bit and a lot of people are saying we have already entered the next bull phase. I want to take a bit more of a critical look on this view here. First, let's look at what happened in the last year:
Since July 2019 bitcoin has come down from almost 14,000$ to about 6,000$, making a reversal in December of last year. The price stayed within the trend lines until, beginning this year, the price started to move upwards. When it broke the resistance at around 8,500 to 9,000 and remained above this price level we began to see a lot of optimism for future positive price movements. As of now, the price almost reached 10,500$ and is now entering a short term correction. Surely with this main resistance broken, we are reaching for even higher levels, right? Well, like always that's a possibility, but I still believe as I have pointed out in previous posts that we might as well see a larger downwards correction.
This is because the recent price movement has remained in a tight upwards wedge without significant levels of volume. One can see that in the past upward long term break outs were marked by an increase in volume. But we are seeing just the opposite: a decline in volume levels.
Another problem to rising prices is that we have a strong resistance coming from way back in 2018. Prices consistently failed to break the 10,000 to 12,000 price levels.
Together this signals to me that we might see some sort of larger correction. In Elliott wave theory terms this might be the beginning of the C wave. Let's see how things turn out!
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
