Bitcoin Makes a Strong Trend Reversal, Big BTC/USD Price Move Might be Coming
- Bitcoin makes another 2019 high at $11,470
- Since breaking out on April 2nd, we are moving about as fast as the end of 2017 crypto mania
- Grayscale Bitcoin Trust trading at a 40% premium
Bitcoin is on the move yet again as the leading cryptocurrency makes another 2019 high at $11,470 today, up 4.24 percent in the past 24 hours. Throughout 2019, we have been surging recording 206.6 percent YTD, embarking on the next bull cycle.
Yesterday, we went down to $10,500 from the high of $11,200 only to make another move up today which analyst Galaxy says is “probably the strongest trend reversal of an asset human race has ever experienced and it's just getting started.”
Bitcoin price up 206% till date in 2019, Source: TradingView
The 2019 rally started on April 2nd with BTC breakout. Since then as trader Jonny Moe notes, we have been moving nearly as fast as we did during the end of 2017 crypto mania. This move is
If we measure both moves from the same price levels, this time we have covered the same ground in 82 days in comparison to 65 days it took in 2017.
Is Bitcoin Overbought?
Bitcoin is going at a fast pace, especially in the past 90 days as out of the 206%, 184 percent surge came in these 3 months. Does this mean Bitcoin is overbought?
According to economist and trader, Alex Kruger, this isn’t so as he explains that since 2014, Bitcoin traded fully outside the Keltner Channel (a set of volatility-based bands placed above and below an asset’s price) with RSI being over 90 on nine occasions.
- 6/9 times retraced to the open of preceding day in under 20 days (avg 10d)
- 1/9 times it took 79 days
- 2/9 times it never retraced (May 2017)
“Avg max runup in following 20 days stands at 25%, while avg max drawdown stands at 12.5%. Analysis excludes contiguous days outside the channel. Jun/23 represents the 10th occasion since 2014,”
pointed out Kruger.
Get Ready for Another Move Up
Bitcoin price is moving up and so does the BTC dominance which is currently at 62.4 percent and further pushing upwards.
As Bitcoin price rises, dominance is expected to surge as well which “continues to look bullish.” This means there would be no alt season.
The price is further expected to have a $2k move upwards from the current high, before running into weekly resistance.
According to crypto trader and investor Josh Rager once Bitcoin breaks above $11,500, the price could get pumped to rip up to over $13,500. Recently, another analyst Magic Poop Cannon called for $13,500 target as there is no major resistance above and as Rager notes,
“large gap in volume profile.”
Once reaching the resistance level, we can very well expect a 30 percent decline in price, as has been the norm in previous Bitcoin cycle.
Please do not forget that #bitcoin will (and is overdue) provide 30% declines in any strong uptrend.
I mean if it happened from here, it would send Bitcoin crashing to prices seen….two weeks ago! pic.twitter.com/iIkM128fmv
— Bob Loukas (@BobLoukas) June 24, 2019
Another factor calling for a move up is Grayscale Bitcoin Trust that is trading at a 40 percent premium.
“BTC big move might be coming.. GBTC is trading at a 40% premium right now. Big money coming in! I am long GBTC in my Roth IRA and as a long-term trade,”
Every other day, Bitcoin is making a new high, moving towards the 2017 peak of $20,000 which doesn’t seem too far away now given the speed we are going at.