Why Bitcoin Consolidated after Flirting with $5000 zones?

  • by Amir El Araby
  • April 5, 2019, 16:16 AM
  • 255 Views
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By examining the weekly chart of Bitcoin, we can notice that the bullish momentum seen in the previous days has stopped a little bit. Actually, there are some reasons behind this calmness seen yesterday and today after touching $5400 regions as follows:

1 – The 61.8% Fibonacci retracement of the entire upside wave that was topped out in the $20k meets $5400.

2 – SMA (moving average of 50-day) should have the ability to slow down the bullishness. From a purely technical perspective, moving average is a target of the bounce and since it was almost touched, we should witness some consolidation.

3- We don’t want to ignore the psychological role of $5000 and $5500.

Anyway, we see a strong probability of hitting $5500 territories since momentum indicators remain in a positive mode despite the strong bullishness seen this week.

BTC-OFEED-TECHNICAL ANALYSIS.png

Regarding technical objectives of Bitcoin, we do believe that the path will be cleared towards $8500 areas once bulls beat $5500.

Conversely, Bitcoin will fail to break the above-mentioned resistances if $3980 support couldn’t protect buyers.

Briefly, long positions are favored !!  

Amir El Araby

Financial advisor with 20 years’ experience in the technical analysis studies for FOREX, Commodities, and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of the Egyptian Society of Technical Analysts (ESTA)

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