Will Today’s Price Surge Act as a Signal For Crypto Market’s Bottom?
The current price of Bitcoin is $3862 (Bitmex Pricing), with 24 hour volume leveling at 9.9 billion USD.
Bitcoin’s price has increased by roughly 6.6% since yesterday’s daily close; its volume has increased by ~35%. These are massive movements considering the current state of the market. Clearly there is immense buying pressure of $BTC in the 3k range.
Now, the question is, where do we go from here?
We will never know, with absolute certainty, where the market is headed, but we are seeing enough to postulate that there is more upside for $BTC and $Alts in the coming weeks.
Volume is the key ingredient to any shift change in market structure. We have seen large amounts of volume since the beginning of this bear market, but typically these volume spikes have been associated with sell-offs. Crypto is currently experiencing its highest volume day since May 2018 — and there is still over 3 hours left until the daily close!
Bitcoin transactions are now almost back to all-time highs, which indicates good health across the industry.
Technically speaking, we are seeing wyckoff accumulation price structures (most nearing completion), completed inverse head and shoulders breaking upwards, and moving averages shift from resistance to support across the board in crypto. All three of these are present on $BTC.
Our team believes that over the course of the next few weeks, we will see $BTC march towards $4700-5000, where major resistance and technical price targets will be achieved. Not to mention, there could also be psychological resistance at $5k .
We will be taking on an uncharacteristically high crypto/fiat portfolio weight as we are very bullish for the coming weeks (90% crypto/10% fiat). The move north for $BTC should trigger $Alts to take back some of the territory lost over the course of this bear market.
That being said, we think that there may be some slightly better opportunities over the course of the next 24-48 hours to enter as crypto prices consolidate after this run up.
We will keep you updated on price action and our sentiment over the coming days.