Currently, the coin is trading around a symmetrical triangle on its 4-hour time frame. Last week, the price bounced to around $7000 and now hovering around $8000-8500, thus bitcoin’s price surge is expected to continue.
A price increase past this level could lead to an actual resistance test at $9000 very soon or even higher. Nonetheless, the 100 SMA is still less than the longer-term 200 SMA to signal that the path is on its way to a downside. As such, there is a chance for another deep, leading to another test for support.
The gap between the price averages is narrowing by the minute. If an upward movement takes place, more buyers could come in to sustain the climb, and possibly to a higher price than the past. As bitcoin’s price surge continues, more traders are waiting after the tax-filing deadline to move in for the kill.
Additionally, hedge funds are bracing themselves up for the second quarter which has proven historically to be bullish for the cryptocurrency. Moreover, traders are also likely to take advantage of this pattern.
In an article last week, we talked about an ensuing end to the crypto winter. The current market deep could be attributed to recent claims of theft and fraudsters taking advantage of unsuspecting traders. Additionally, more administrations have moved in to set regulations and even taxes in the crypto industry bringing in more confidence in the market as many expected outright bans.
However, according to Timothy Enneking, the bearish market is expected to end soon after the world gets a clear picture of cryptocurrencies regarding legitimacy, regulation, taxation, and adaption. Furthermore, speaking to CNBC, Kelly likened investment in bitcoin similar buying Microsoft or Apple shares when they are at $5. He added that, just like in the 1980s, during the adaptation of the internet, we are likely to expect some more volatility, but the market will rebound soon.
Do you think bitcoin’s price will continue to increase as we approach the second quarter?
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