Bitcoin has been very volatile lately. Investors have witnesses the major highs and lows of the Bitcoin era for several months. There was a recent upward momentum that was able to shoot past its resistance level of around $10,800 which may even reach $11,000 very soon. It dropped to as low as $9,400 but recovered to a stronger depth of resistance.
The Bull Cross Formation
This upward trend has encroached Bitcoin which allowed it to build a bullish formation that can strengthen its upward momentum. While it is at its bullish development, Bitcoin still continues to face strong resistance a failure to sustain or go oever the established level could send it downhill and eradicate its recent gains.
With the “Bull Cross” formation, this sets the tone on how Bitcoin will perform in the next months of 2019. This signals that a big move is imminent. This is a key indicator that the bullish trend could be in for the long haul if and when Bitcoin is able to maintain its upward trend or momentum in the coming months. The daily and weekly charts are roughly the most important barometer to gauge as to how Bitcoin will be able to continuosly push the numbers up against the next resistance level.
The Falling Wedge/Bearish Formation
Some investors have been panicky with the descending channel or lows of Bitcoin. This weekly resistance tightens the price action. The lows actually pus just the right amount of tension or pressure which signals the brewing of Bitcoin’s massive move. The bearish pressure actually helped pull off the bullish formation of Bitcoin.
Tightening of Bitcoin Prices
The constant push and pull or highs and lows of Bitcoin have a great impact on bitcoin prices. There has been a massive move and then followed by a retrace. The jump signals that the bearish trend or downside of Bitcoin is over and that it’s high time to look for long entries. In other words, the impulsive selling reaction or retrace should be an opportunity to make an entry.
The decline in trading action implies that the breakout traders are just waiting on the sideline for the right timing. The slight pinch allows for a massive action that is indicative of a strong buy and sell signal. History would reveal that there could me move lows of downward movement in days or weeks to come before Bitcoin shows steady weekly gains.
Bitcoin Remains Dominant Towards 2020
Bitcoin still remains to be the leader and dominant crytocurrency in the market. It’s the prime mover and while it’s highly volatile at the moment. It’s attempting to create a pivotal movement anytime soon. This crypto asset which seems to be in the red or negative in the markets for the previous months may have the inverse effect on the direction of Bitcoin price which support the bullish trend.
The fear and greed index is experiencing lows which go the same for Bitcoin futures. The speculations have dropped which is something that the contrarian traders must take advantage of. The bullish reversal has taken place and might proceed.
Bitcoin prices are bound to surge to as much as 40%. The higher levels are now seen to be sustainable by cryptocurrency analysts which may be a positive jump towards 2020. It’s imperative that the bullish streak is getting more stable than the bearish formation; which is a good signal overall.