Today, after two days, we will quickly see how the Bitcoin (BTC) market is doing. In the previous analysis, I outlined a possible scenario for the development, but at the moment it seems as if it will be a little different as a result. Respectively, it can still not be ruled out that a correction will take place, because from a technical point of view it is simply meaningful.
However, we must not ignore emotions that also significantly affect the market. Greed, on the other hand, can be felt significantly from social networks, and this is mainly reflected in the market. This is reflected in the fact that when it tries to dump, buyers immediately take it as an opportunity. Which seems to be a pretty big risk for me in the current situation. But those shoppers probably do not care.
Current situation at 4H TF BTC / USD
In the end, the market could not even attack $ 12,000. Initially, sales pressure was weaker, but soon accelerated, giving the price to the S / R level of $ 11,128 and EMA 55. Both the price level and the exponential average curve acted as support. Especially the EMA 55 has been working quite reliably lately.
In any case, after rebounding, the price returned above $ 11,500 and continues to rise. In addition, the market structure from this month looks like a bull flag. Based on this, of course, the direction is clear – we should continue to expand. This is because the actual consolidation within this pattern can be considered as a correction.
It is not a consistent correction, but if it is enough for the market, we can attack $ 12,000 again at any time, and if the outbreak succeeds, it should cause a further increase in buying pressure, which could push the exchange rate even higher.
According to the RSI indicator, it really looks like something is up. For a relatively long time, the curve for this indicator has been around 55 points. The final form of development is therefore fairly neutral. If I had to evaluate RSI even on higher time frames, there is still enough room for expansion. But the risk of a deeper correction will increase as the price rises.
With regard to the MACD, the market has looked at this indicator. In the 4H time frame, the values are quite close to the neutral value (0). According to the MACD, momentum is still negative, but it is heading for a bullish cross.
Right now, it really looks like Bitcoin will try to beat $ 12,000 again. I would also see it this weekend. But the growth itself is not very meaningful to me (not even in the connotation of the state in the currency market Ethereum). As I mentioned in yesterday’s analysis, this market is too burnt.
So if Bitcoin is pumping, it’s hard to say how Ethereum, for example, will react. We can even see BTC grow even harder because there is a lot more space. But I would definitely be more careful and have a plan, to attack $ 12,000 can be a nasty bull trap. It definitely pays to have a position protected by a stop loss.
NOTE: No information in the article is an investment card. Before you invest, do your own research and analysis, you always trade only at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!