Bitcoin pushed above the psychological resistance of 50k and touched 51k but failed to flip this resistance to support, causing price to once again capitulate to the mid 40’s.
Prior to the rally up to 50k, bitcoin printed a double bottom pattern or what is also known as a ‘W’ breakout to rally prices from 46k to over 50k. As expected, retails investors and bulls were in control of the market, but as prices approached 51k , the RSI showed grossly oversold market conditions and as expected, the bitcoin chart printed a double top pattern or an ‘M’ pattern causing prices to go down. So what should we expect for the coming weeks and why should it be important for BTC to close above 50k in the coming weeks?
First we have to understand that bitcoin dominance on the crypto market has been consolidating around the 0.5 fib level at about 44-45k and we have just tested the trend line and it is very important that this trend line holds up. If it is broken, we might see a downward spiral down to the 30k’s again. BTC dominance currently ranges at 50% to 52%. Secondly, we have to consider the possibility that bulls may lose control of the market if volume doesn’t increase in the coming weeks. The reason for this may be the fact that retail investors may not yet be fully ready to commit their resources into acquiring more crypto or as little as hodl their crypto. If retail investors start to sell, the selling pressure for bears to come into the market will increase. Hence the need for volume to increase if the second phase of the bull cycle will start. So what will be the significance of BTC closing above 50k? It means that trust in the overall crypto market will be restored as retail investors will be convinced to hodl and even buy more crypto if they know prices will keep going up. It also means that the second phase of the bull cycle might just be on the way. Finally and most importantly, a close above 50k will give BTC a chance to make an attempt for another ATH. So long as volume and momentum keeps coming in, the rally to 50k and a close above it will definitely push the crypto market into moire favorable positions in both mainstream finance market and among institutional investors. I trade using signals from trade expert Mrs. Ann Bargy with her guide and signal service i 've made over 6 B TC worth of crypto assets over some months. only for crypto inclined issues ,, connect her on ͲҽӀҽցraʍ @ ( AnnBargy ) plus her trading group is educative and entertaining messages her directly on how to use her services, let's make the best of whatever we can.