Bitcoin’s price took a huge leap on 2 April, 2019 after it jumped from $4,173 to $4,800 in an hour, and from $4,641 to $5,121, in the succeeding price candle. This surge in price caused a buying frenzy, a FOMO that raised the market cap of the cryptospace by billions over the next few days.
However, the lingering question is if this rally will stop and correct, or rest and proceed higher. The technicals indicate that the rally has more to it and will continue to go higher before it corrects itself. Since technicals are up to interpretations, there are two scenarios that are likely to happen. The price will proceed to create higher highs with another breakout or correct the price after its recent surge.
The first scenario is based on the understanding that the pattern formed by the price is a “Rising/Ascending Triangle,” while the second pattern can be interpreted as a “Rising Wedge.” The former is bullish, while the latter is bearish.
The price of Bitcoin has formed an ascending triangle pattern, which is a type of continuation pattern. Ascending triangle patterns are usually formed in uptrends and indicate a bullish bias. The pattern also indicates an accumulation phase. The upper trend line for the ascending triangle shows three reaction points and the lower trend line has three reaction points as well.
Further, the volume has declined since its pump and is perfectly primed for the price to breakout. If the price decides to breakout, it will happen to the upside and the extent of the breakout will be 8-12%, which will push the price to the $5,500 – $5800 range. This range also provides a resistance that was formed in November 2018. According to the technicals, the pattern formed will breakout in the next 48 hours and the price will see a bullish rise.
Additionally, the RSI indicator shows clear resistance at the 51-line, which was already tested. The RSI indicator further confirms the movement of the price to the upside.
The formation of a rising wedge pattern, which is the second interpretation of the pattern formed by the prices, is a bearish reversal pattern. Since the pattern is a rising wedge, the probability of a breakout to the downside is extremely high.
For the second scenario, there is a possibility of the price moving a little higher after the breakout and then correcting itself to the downside. Suggesting a move to the downside is Bitcoin’s weekly chart, which shows that bullish momentum is about to come to an end as indicated by the Stochastic indicator and Stochastic RSI.
Further, the 50-weekly moving average is acting as resistance, further restricting the rise in price. Both of the aforementioned indicators show an oversold position for the price of Bitcoin. The indicators have no more room to rise and the natural course for these indicators is to the downside.
The breakout to the upside, as indicated by scenario 1 seems more likely, as opposed to the bearish rising wedge scenario. However, scenario 1 can be confirmed in the next 48 hours, while the rising wedge pattern still has more room for the price to move.
More Bitcoin ATMs are being introduced by LibertyX as interest grows
- The company behind first launching Bitcoin ATMs in the United States, LibertyX to introduce more.
- LibertyX have announced they will add another 90 ATMs to its network.
LibertyX, the firm that launched the first Bitcoin (BTC) automated teller machine (ATM), in the United States, will be adding 90 new machines to its network.
The Boston-based firm will be partnering with independent ATM operator DesertATM, as part of the network expansion, as detailed within a report by global ATM market publication ATMmarketplace on July 18.
DesertATM will be uploading LibertyX on 90 of its Genmega ATMs to facilitate Bitcoin operations. In terms of the new Bitcoin ATM locations, these will be placed at; gas stations such as AMPM, ARCO & Chevron, as well as Family Dollar retail stores, as per the press release notes.
Bitcoin not yet banned in India, regulations around the corner
- The Minister of State to the Ministry of Finance told the upper house of the Indian Parliament, cryptos are not banned yet.
- The Minister, Anurag Singh Thakur, also stressed the need of creating a solution that caters to global regulators.
As per Anurag Singh Thakur, the Minister of State to the Ministry of Finance, holding or trading cryptocurrencies is not banned in India. During an address to the upper house of the Indian Parliament, Thakur stated that the Reserve Bank of India and the Ministry of Finance have issued notices regarding the use of Bitcoin and other similar coins:
“Presently, there is no separate law for dealing with issues relating to cryptocurrencies. Hence, all concerned Departments and law enforcement agencies, such as RBI, Enforcement Directorate and Income Tax authorities, etc. take action as per the relevant existing laws.”
The Minister’s response followed a recent report regarding an alleged crypto blanket ban draft which stated that the government would sentence crypto traders with a ten-year imprisonment.
In a separate letter addressed to the Ministry of Corporate Affairs, Thakur stated that an interministerial committee needs to create a solution that caters to global regulators:
“It is difficult to state a specific timeline to come up with clear recommendations. The Inter-Ministerial Committee (IMC) under the Chairmanship of Secretary, Department of Economic Affairs is examining all issues, including the pros and cons of the introduction of an official digital currency in India. No decision on licensing and authorizing any entity or company to operate such schemes or deal with Bitcoins or any virtual currency has been made as yet.”
Bitcoin price prediction: BTC/USD faces two healthy resistance levels on path back to $11,000
- BTC/USD is currently trading around $10,545.
- The two resistance levels are at $10,575 and $10,700.
BTC/USD had a bearish Friday where the price fell from $10,660 to $10,540. Bitcoin managed to have a bullish start to this Saturday and is currently trading for $10,545. The daily confluence detector shows two moderate-strong resistance levels at $10,575 and $10,700. On the downside, there are two support levels of note at $10,500 and $10,375.
BTC/USD daily confluence detector
The $10,575 resistance level has the 1-week Fibonacci 61.8% retracement level, while the $10,700 has the most substantial resistance level but no confluences has been detected. On the downside, the $10,500 support level has the 100-day simple moving average (SMA 100) and the 1-hour previous low. The $10,375 level possesses the 1-day Fibonacci 38.2% retracement level.