Bulls in Motion as Bitcoin (BTC) Trades above $5,650 USD Price Point But Danger Flashing Ahead
The leading cryptocurrency is enjoying a good deal of greens as Bitcoin traded at $5,822 with 24-hours gains of 2.29 percent, at the time of writing, as per Coinmarketcap data. As BTC climbed upwards, altcoins also saw flecks of green with Bitcoin Cash (BCH) and Litecoin (LTC) registering over 3 percent gains taking the total market cap to $185 billion.
Currently trading at $5,654, Bitcoin has turned the market sentiments bullish and have traders looking for $6k. However, as the price goes up, BTCUSD longs have taken a deep dive while shorts are surging since mid-April. But the greens of May seems to be having an effect on shorts as they dropped on May 2nd.
Pointing this out, Crypto trader Moon Overlord shares how order books are “absolutely loaded for shorts/sells.” According to him, bears are all in and he is expecting “monster green candles.”
“Wouldn’t be surprised to see a monster green candle as the direct result of underwater shorts closing / cascading. Idk how much longer bears can hold these they are getting crushed and have been for weeks.”
$BTC – Week Time Frame
In a zone with little interest historically, and would like to see this keep pushing up before a major retracement in May/Early June
But not a lot of total weekly volume for it to be Friday, which makes me skeptical
Looking forward to the weekly close pic.twitter.com/GB51UPWCLo
— Josh Rager 📈 (@Josh_Rager) May 3, 2019
A Drop to $4,200 Could Still Come
However, analysts are not putting a drop down from here off the table. A correction has been expected that could take Bitcoin to about $4,200 level. Recently, crypto trader DonAlt shared how the premium of more than $300 on Bitfinex is “worrisome,” and we need to “dump to get rid of it.”
“Up first, down after” is what DonAlt said further stating “No matter how high we go I expect sub 5k Bitcoin pretty soon.”
Note that on the last 2 "euphoria moves" since the $3,100 bottom in December, we popped the .786 and .618 pretty pricely.
— Jonny Moe (@JonnyMoeTrades) May 3, 2019
Crypto analyst Magic Poop Cannon, who has been calling out for a dump for some time now has shared two analysis where in one of the analysis he talks about the potential bullish uptrend that could see us going to about $7,800 level while his bearish analysis calls for a major pullback retesting of $4,200.
Talking about the ongoing rally, he says Bitcoin has rallied into the bottom of the major overhead resistance zone. BTC, he says rallied into the very bottom of the resistance zo at $5,777 but hasn’t surpassed it.
Explaining his bearish scenario, Magic shares that Bitcoin is running into major resistance while being “overbought” as indicators flash bearish signals.
“I have readjusted the 61.8% Fibonacci retrace, since the high from April 23rd was surpassed. As you can see, the 61.8% retrace is now RIGHT on the peaks from December, January, and February. That tells me that this is probably the top. Because, if Bitcoin continues to rally significantly higher, it would also raise the 61.8% retrace.”
Pointing out the bearish signals, he says, the volume is declining with there being a bearish divergence on the MACD and a sell signal on the NVT. Moreover, he says RSI is in overbought territory that makes him bearish on Bitcoin at the moment.
Experts are calling out for a correction while Bitcoin is trending upwards, what remains to be seen now is if we drop in the $4k to $5k range first or will shot straight through $6k.