Bitcoin 50 EMA Shows “Incredible” Support, Analyst says the BTC Bull Tide is Turning
For about last one month, Bitcoin has been crawling its way from $3,700 to the $4,070 level but has yet to make any prominent move. At the time of writing, the leading cryptocurrency has been trading at $4,048 with 24-hours loss of 0.61 percent, as per the data provided by Coinmarketcap.
However, this is not the first time Bitcoin is making these kinds of no moves, as have been already widely discussed and shared, the current movement of Bitcoin price is similar to that of 2015 market.
Crypto analyst, Magic Poop Cannon shared the similarities between the two cycles and the critical resistance Bitcoin is facing.
To start with the current price movement, 50 EMA is showing “incredible” support. Since Bitcoin dropped 9 percent in February end, till now this support hasn’t been broken. Why this is important? Because since the bull market was in full swing, Bitcoin hasn't held the 50 EMA like this and this is where things will change.
“These little nuances in the market are indications that the tide is turning. It's time to pay very close attention because this market is beginning its metamorphosis,”
said Magic about 50 EMA support.
Now, talking about the similarities of the current market with the 2015 bear market bottoming cycle, according to Magic they are “incredible.” In moving averages, 50 EMA was the resistance only to later become supportive. Moreover, the price also formed an inverted head and shoulder pattern.
In 2015, the price broke out above the second peak’s resistance to skyrocket to the 61.8% retrace and currently, this retrace falls at around $5,236. However, he further cautions that being a good trader means working with the evidence not just opinions.
“I have the opinion that price will most likely continue to grind sideways this year, but the second I see a confirmation above the red horizontal trendline, that “opinion” will be instantly changed by newly tradeable evidence.”
On the basis of the 2015 analysis, if the price does move up now, $5,236 will act as initial resistance. From here, we will trade sideways for a while only to explode above it but here BTC will face the major resistance at $6k.
However, this $6 is not expected until later this year but if the price starts rising above $4,200, he says, it is a possibility we will climb to $6k. Moreover, due to the difference in both the cycles in the way that in 2015, it took 300 days for the inverse head and shoulders to break out, in 2018, it was only 124 days into the pattern, a breakout, sooner than expected can also happen.
“Until price gets above that red line, we can expect the sideways grind between the low 4000s and the mid 3000s to continue.”