I think it will. The bitcoin price hasn't moved much over the last 24 hours. It continues to trend relatively sideways, as trading volume continues to drop further. The movement illustrates cautiousness, but nonetheless, it looks like traders are simply waiting for a breakout towards either side. The upcoming waves will influence future trade positions.
The future of bitcoin however seems bullish, thanks to the recent update from Benjamin Lawsky’s office regarding BitLicense. The NYSE-Coinbase partnership last week gave us an over reactive spike towards 315. Now if the market is in the mood to play yet another hype-game on upcoming events, we are surely looking at a bull run towards long-term key resistance levels. 320 perhaps!
February 5th Bitcoin Trading Session: The BTC/USD opened at around 226 while continuing the prevailing sideways trend. During the day, the price seemed to be under a little influence of sellers, going downwards following little pushes. However, a big candle appeared out of nowhere after the 8th hour and price fell down around $10 within just four hours. It attempted a quick pullback in the name of correction and went on continuing the previous sideways trend - trading between a Bollinger band.
At press time, the BTC/USD is valued around 216.
What to Expect Today? The BTC/USD has been sliding downwards since the start of the year. It has once tested 165 as its lowest bottom. By looking at the current scenario, it seems like the price is once again going to retest the same bottom in the upcoming days.
The technical indicators meanwhile are also indicating a rather stronger bearish bias in the market. As you see the 4H Bitfinex chart above, you’ll notice a near-perfect inverse Head-and-Shoulder forming; imperfect because the right shoulder looks quite weak at this point of time. This simply means the price is targeting some more downward movements, possibly to retest 200, maybe 165 at worst case.
To regain the lost bullish momentum, price would be focusing on breaking the neckline around 245 at this point in time. In the last few hours, the BTC/USD has already tested the 210 bottom successfully, and its arrow is now pointing upwards. A smooth correction however depends on the buying volume. Traders may long towards 245 at press time. But the extension of bullish momentum could only be confirmed once price breaks above the 320 upside risk. It’s a long shot.
A drop below 165 meanwhile signals a bearish breakout where price may even go as low as 100.
Conclusion (On Daily Charts)
Current Mood: Strongly Bearish
Technical Indicators: Strong Sell (0 Buy 7 Sell 4 Neutral)
Moving Averages: Strong Sell (0 Buy 12 Sell)
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