Bitcoin engulfs out of key support zone ... volume suspect ... can we get some follow through Tuesday?
The good news? Bitcoin bears were rejected below the long term trend-line on Sunday and bulls managed to print a Bullish Engulfing candle Monday. The bad news? The engulfing is no where near as large as I would of hoped and volume is substantially below the four week average. Still, Sunday's first-of-quarter rejection is a positive sign and we may well get some follow through volume today as traders return to the markets after the Easter break:
Initial resistance is 7100, marked by the March 29 close at 7094. A daily close above there on above average volume would bolster the case for a more meaningful reversal towards 9000/9500.
Initial support is yesterday's low at 6770, followed by the April 1 low 6430. Below there, the 2018 low at 6000 would act like a magnet and hopefully attract significant buying interest for a more aggressive reversal.
Though I'm not yet convinced by the current reversal formation and I've been beaten and battered by this market all year, I remain cautiously optimistic as long as this 6000-6950 key support zone is in tact:
Just need a bounce to inspire you to write analysis ;)
I don't want to get too excited. One green candle, a spring it does not make... or something like that?
Have a good week mate!
One swallow doesn't make a summer
😂😂.
Happy with the recent price action, however I believe we need some stronger volume for the next move up.
Fingers crossed.
Not a convincing bounce at all.
For me the greatest risk to the crypto market right now is actually the stock market. If we get a "risk off" type panic in traditional markets it'll hit crypto just as hard. Even though we look oversold there is no reversal on volume since the 6K low so that's not good.
Yep, funnily enough SPX bounced yesterday too ... Crypto was supposed to be a safe-haven ... but it appears to be highly correlated to risk sentiment.
"Highly correlated to risk sentiment" Nailed it there.
I dont know if Crypto was supposed to be a safe-haven. Definitely I thought SBD was supposed to be a safe-haven....and to some extent Tether. But it turns out neither are particularly safe.
Get some Gold and Silver mate ;)