Bitcoin: A return to 5000 USD is it possible?

Bitcoin: A return to 5000 USD is it possible?

Why 5000 USD?

The answer is almost obvious with a little hindsight. Support at 5000 USD corresponds to the passage of the MA 100 (99-101) on the weekly chart. Clearly, it is a very strong support point, a rebound on the MA100 seems more than likely, or at least, sellers will have a hard time falling behind. In the end, support at 5000 USD appears as a good entry point so tempted that it manages to contain the sellers.

A likely scenario?

Yes, it's quite likely. Analysts are waiting for this entry point, this is a key point, a lot of capital could be committed once it is reached. Nevertheless, to reach it, the sellers will have to break the pivot support to 5800 USD and to close for the first time on this side. If this is the case, a sell panic will easily drive the market up to USD 5,000.

A passage under the 5000 USD is it possible?

Yes that's quite possible, the point at 5000 USD is a support, it can be broken, but the sellers must not close below in Weekly, otherwise a much bigger correction could intervene. Indeed, breaking the MA100, our pivot support, and our dynamic support would be a strong signal. Nevertheless, for the time being, our indicators remain quite optimistic. On the RSI in Monthly, we are close to a major support that has never been crossed since 2013. The probabilities are therefore clearly in favor of a rebound to USD 5,000, and not a new corrective phase.

How to position yourself?

For now, we have to wait. We are in a very difficult market situation, in the middle of a movement. The courses form a compression figure, there is no real trend. On the other hand, the news is very positive for the months to come. Of particular note are Bakkt, the new Starbuck's and Microsoft project, but also the postponement of ETFs in September, or even the announcement of a major firm that is starting to develop blockchain mainstream solutions.

All we know is that a bull run is expected, and that we are approaching a major support, certainly the bottom of the correction. Time is no longer day trading, but accumulation. It is time to take advantage of these long months of patience, reinvest our capital, and enjoy the recovery. Given its potentially irrational nature, not to miss the train, we have already begun to take a position between 6000 and 8000 USD. These positions are all losers at the moment, but we still have capital to invest that we keep especially for the arrival to 5000 USD, and we can thus take full advantage of the next bull run. Everything seems to indicate that the correction is coming to an end, if the ETFs are accepted end of September, the market will explode on the rise.

A month of September highly anticipated?

The month of September will be crucial for the Blockchain ecosystem. In particular, at the end of the month, we expect the SEC's decision on ETFs. In addition, we will have left the summer period, often very calm. Finally, the month of September marked the beginning of the last bull run in 2017. Indeed, buyers were speculating on future contracts and the controversial B2X.

We will also note for the first time since September a bullish recovery of bullish volumes. At the compression figure output, many long positions were taken. But above all, this is the sign that the underlying trend is changing, the first bullish signals are now perceptible, we are now evolving in a figure of compression. We are in the second stage, the compression, we have only to wait for the trend reversal and take long positions to catch up with these long months of patience.