Bitcoin is Still Bullish, Believe it or Not

9 de mai. de 2019

We were able to successfully predict Bitcoin’s price action before. But at this point, it appears as though long positions are actually becoming increasingly more dangerous by the minute.

The purpose of this price analysis will be to explain this all below.

Let’s start with the weekly resolution for Bitcoin, because we haven’t looked at that one in quite a while.



As we can see in the picture above, the Zerononcense Reversion Ribbon V2 (custom indicator) shows that the buy pressure for Zerononcense is waning significantly.

Specifically we can see this occurring here:



This level of divergence is always a signal of serious waning buy pressure.

The dark green coloring of the candles indicates heavy buy pressure as well.

Daily Resolution; Bitcoin

In the last price analysis, we looked at a potential ascending wedge.



In the chart above, the ascending broadening wedge that we see here has actually been exceeded (there is a candle above the diagonal upward resistance that we identified).

However, this does not have the volume that is typically accompanied with a true blue breakout so this needs to be kept in mind.

Of course, we can’t make conclusions about the candle until it closes on the daily (at the time that this is being written, there are 15+ hours left in the daily period).

Relative Strength Index(14) on the Weekly Resolution

Something else that’s really interesting to note is that the RSI(14) on the weekly resolution is actually close to the ‘overbought’ zone for Bitcoin, which is a bit surprising, all this considered:



In the picture above, we can see that the RSI(14) for Bitcoin has essentially spiked straight upward on a week over week basis since December 10th, 2018 (a week before the last ‘bottom’ was experienced).

There has never been a time in Bitcoin’s history where the RSI(14) has went from oversold to essentially overbought without any hitches on the ride on the way up. So, if this were to manifest itself, then it would be unprecedented on a number of different levels.

Golden Cross on the Daily

This was mentioned before, we believe, but it bears repeating that the golden cross has already occurred (it happened on April 27th, 2019):



As shown in the chart above.

Specifically, when saying ‘Golden Cross’, this refers to the phenomenon where the EMA-50 crosses above the EMA-200.

Looking at the Immediate Future

If we go back to the weekly resolution, the Ichimoku is showing some ‘resistance’ directly overhead via the Cloud:



It is worth noting that the volume has decreased over the past few weeks if we check out the bars that are presented at the bottom.

Overall, Bitcoin is Bullish

Despite the strength and length of the run that Bitcoin is on currently, it is still extremely bullish at the time of writing.

Overbought indicators do not mean that an impending reversal is coming unless there is waning strength in those. And that is something that we simply cannot see with Bitcoin at the present moment.

Until there are more signals of actual waning price action by Bitcoin, then there is no reason to assume that it will eventually decline in price.