Bitcoin is bullish. It has been for some time. In fact, December 2018 was the last bearish month for this hot asset. The 15th and 16th of December BTCUSD made a couple of Dojis at the end of a descending triangle and touching the $2,128.32 level, and that was the end of troubles for the pair.
BTC started moving up in its first bullish impulse up to $4,215 on December 24. From there it retraced, in a 3-wave pattern more than 60% of the advance.
On February 29 I created this chart:
On this chart, we can see that the price was moving inside a descending triangle and also inside this rectangular area which marked a strong support zone.
I’m not a great fan of the Elliott Wave Analysis, But I recognise that is is a good map to guide us in the identification of long-term movements. So I started signalling the potential wave points. And I concluded that if the price was holding in that support area, we could experience an excellent Wave 3 for this pair.
So here we are now. After more than three months the price has moved consistently up and currently is in the verge of doubling its December 2018 price.
Bad News Good News
We can see the bullishness of an asset when, besides bad news, it can continue its relentless upward movement. That is the Case with the BTC. In recent dates, BTC has overcome Bitfinex indictment and also fresh news about its 2016 hack moving to fresh highs the next day.
Binance yesterday announced a hack of about 7,000 BTC on May 7, and asking for a rollback of the blockchain back to that date, to solve his problems. The pair overcome this, as well. That might have been helped by two excellent news for the crypto world.
- News reports about institutional funds, including Fidelity, starting to invest in bitcoin for their portfolios.
- Facebook reversing its ban on cryptocurrency ads.
The current Outlook
We currently see the BTCUSD price above $6,000 and has moved inside the blue region that is highliting what previously was a strong support for the Bitcoin and that currently became resistance.
What the technical analysis tells is that there is a high probability that the advance stops here and experience a period of consolidation ( what would be the 4th Wave according to Elliott) before resuming its advance.
We see a growing bullishness to the BTC, so it wouldn’t surprise us to see it moving to the top of this area. What everybody expects is at least a touch of the $6,400 level, but, as I said there wouldn’t be a surprise it BTC moved up to 6,800, in view of this bullishness and current or fresh good news.