Bitcoin on a bull run now ?
Hmm. Bitcoin has maintained some level of stability at $9200 since last week. Early last week, bitcoin made a strong bullish recovery to touch $9800.
In this technical overview of bitcoin price movement, there’s every likelihood for bitcoin to breakout soon above $10,000 within this week or pull back to $7800 if the blue trendline is broken. Bitcoin is expected to find resistance at $12,000(green horizontal line) if price is able to breakout above $10,000.
I am quite concerned about the incessant price rejection as bitcoin has found it difficult to close above $9500 since the first touch last week. I am quite envisaging a pull back to $7800 before the real bitcoin run could begin.
If at the end of the trading day today, price still rejects $9500 and volume decreases geometrically, we should expect some measurable pull back.
Another issue of concern to me while Bitcoin could possibly pull back again to $7800 is the daily volume of bitcoin. Bitcoin needs to have a strong daily volume above $10billion for strong bullish breakout to occur.
As at the time of writing this review, the average daily volume was still around $9.5billion. Strong bullish breakout is expected if and only if there could be a strong buying pressure at this current price of bitcoin with a geometric increase in volume.
Another reason bitcoin could probably pull again to $7800 could be as a result of the recent increase in circulating supply of bitcoin from 16.8million to 17 million bitcoins last week.
So an increase in money supply of bitcoin could create a decrease in price if there’s no measurable increase in demand at this current price above $9000.
So in a nutshell, I am not so bullish biased now until bitcoin is able to breakout above the yellow horizontal line($10,000) and volume increases geometrically. So I am expecting bitcoin to do some pull back to $7800 in between this week or so before the next bull run could resume.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of ZyCrypto.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.