Bitcoin Shooting Off Bullish Signals, Analyst Says It’s “Far Riskier Being Bearish At This Point”
- If Bitcoin Holds support at $11k, $8k won’t be coming
- The ongoing “bullish momentum begets bullish momentum”
- Bitcoin daily moving averages are “Bullish AF.”
For the past few days, Bitcoin is enjoying a ride that has us climbing to $12,325. However, we couldn’t manage to stand firm above $12,000 and soon took a drop to about $11,500 level. The lowest level we reached yesterday was around $11,200.
At the time of writing, BTC/USD was trading at $11,530 with 24 hours loss of 5.34% while managing the daily trading volume of $1.9 billion.
A drop in BTC price has the altcoins falling even harder. The top cryptocurrencies are down by 2 to 7 percent as has the total market at $302 billion.
If Bitcoin Holds Support At $11k, $8k Won’t Be Coming
The price might have taken a drop, but Bitcoin is still bullish as trader Scott Melker observes a hidden bullish divergence on the 4 hour chart getting confirmed.
Analyst and traders are yet again bullish on BTC price after the flagship cryptocurrencies started moving Monday.
$BTC CME futures is the first to extend this move above 1.618 fib extension.
In my system a very strong sign we're in an impulsive cycle for much more up and not a corrective dead cat bounce.
I recognized the same early 2019 and we know what happened after that pic.twitter.com/4o7BfDZptI
— Crypto_Ed_NL (@Crypto_Ed_NL) August 6, 2019
Currently, we are sitting at weekly support at a higher time frame and as long as price holds $11,000, crypto trader and investor Josh Rager doesn't think BTC would be visiting $9,000 again or lower, for that matter.
According to him, it is “far riskier being bearish at this point in time.”
Rager points how currently the popular opinion is that $12,325 level, hit yesterday, is another lower-high local top that will be followed by another 30% pullback.
But in his opinion, $8k won’t be happening because investors had two chances to ‘buy the dip’ when BTC went through a 30% retrace. That, he asserts has been a “rare back-to-back opportunity in a macro bull trend.”
Though Rager doesn’t rule out $8,000, if price holds support at $11k, Rager says “that is where the buy/long is at now.”
Bitcoin Daily Moving Averages Are “Bullish AF”
According to analyst, Joe McCann, the ongoing “bullish momentum begets bullish momentum,” with light headwinds in the short term.
McCann explained in detail how the volatility bottomed and then jumped back into the rising channel with a “vengeance,” combined with Bitcoin dominance putting in a topping candle which is consistent with a cooling off of price and a mild recovery in altcoins.
However, an inverted hammer is in the meantime forming on the current session that is bearish. The same candle is poking above the channel resistance — a sign of overheating.
If we take a look at the daily moving averages, for the 4th day in a row, price close above the 50DMA, in 6th day in a row, close above the 20 DMA, and this has been the 7th day in a row that price is closing above the 10 DMA. This McCann says is “Bullish AF.”
Moreover, the price continues to test the upper Bollinger Band with about 2 of 3 momentum indicators flashing overbought.
Interestingly, Fear and Greed index has reached its highest level in 4 weeks after signaling fear in the market in the last few weeks.
Another bullish indication is the infamous MACD crossover. Since this crossover started, the price has moved up $2,000, notes McCann. The “idiot-proof” approach to using the MACD, he says is to simply “buy bullish crossovers and sell bearish ones.”