Just in case you haven’t been following, here’s a catch up on BTC/USD . What a couple of months it has been for Bitcoin, after year of slander we’re finally starting to see the crypto currency making moves to the upside.

Bitcoin has spent almost a full year hurdling down to its lows of $3130 from December 17th 2017 to December 15th 2018, critics thought they were having the last laugh and the bubble, popped. After finding support and moving in a range for 3 months, the currency finally formed a rising wedge pattern and broke out of its $3130-$4250 range on April 2nd (Figure 1).

Figure 1 – BTCUSD Rising wedge pattern.

Figure 2 emphasises the importance of April 2nd. It was clear that the bulls were in charge at the $3100-$3500 area and price was struggling to fall any further, so as soon as this downtrend line was broken, there was only one way for price to move. It has been reported that there was a single buy order of 122BTC ($500,000) from an unnamed actor on the day which helped the price jump.

Figure 2 – BTCUSD Long term downtrend





 

What’s happening now?

Since the April 2nd breakout, prices have almost doubled and may continue to the psychological level of $9500-$10,000 before pulling back for a well-deserved rest. If this happens, an optimal buy entry would be $5800-$6100 assuming that your strategy is giving you the green light, however, it may be advisable to average down at $8400, $7900, $7500, $7250 and $6600, just in case Bitcoin decides to run off with you left behind. The currency over the past month has also been respecting the resistance lines on its previous parabolic uptrend, suggesting that its next stop will be the $10,000 area.

Figure 3 – BTCUSD Current price

Bitcoin has had a really good month overall this month, not showing signs of weakness with major resistance zones like the $6000 zone. It has also been doing well fundamentally with sites like WhatsApp allowing BTC to be sent through their app. Currently sending BTC to another person or company is an issue for the currency, as this issue subsides and the usability becomes better, this will be indicated in the rise of price, and over the next 24 months, I see huge improvements being made for the currency’s usability.

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Written by Dan Randall, Technical Analyst. Email: dr@thetrade.academy
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