Fundstrat’s Bitcoin Misery Index is at around three-year-highs meaning investors are loosening their money purses. Whether that will spur demand, driving Bitcoin (BTC) prices above $6,000 will largely depend on how prices react at $4,800 and $5,500.
Bitcoin Price AnalysisFundamentals
In a space brimming with FUD, scares, and hype, traders ought to be pragmatic and level-headed to avoid liquidating an undervalued asset at a discount. First, we should note that Bitcoin prices reached highs of $5,500 a few hours after news of NDRC proposing of banning Bitcoin and crypto mining activities.
As absurd as it is, a section did fall for this scare, taking their profits minutes before the slide. Presently, what we have is a retest of $5,000, and after two weeks of solid marching, Bitcoin buyers now face some headwinds, but this is normal considering the double-digit gains of the last few days.
Technically, a correction was in waiting and should we mesh that with Fundstrat’s Bitcoin Misery Index printing 89, last seen in June 2016, then it is clear that prices were ripe for a retracement as BTC is re-valued before the next leg up.
All the same, Tyler Jenks believes that Bitcoin will add to their losses in days ahead:
“I have not commented on Bitcoin since we broke up through the $4,000-4,200 resistance zone. I believe we are headed back down to that zone and it will not hold. New lows are coming. The target of $1,000 unchanged.”
Candlestick Arrangements
Although Bitcoin (BTC) prices may be under pressure, buyers have the upper hand, and rejecting lower lows. At the time of press, Bitcoin was up 3.2 percent in the last week but stable in the previous day as bullish momentum picks up in the 1-and-4-HR charts.
In line with our last BTC/USD trade plan, every low–with prices trending above $4,800, is technically another buying opportunity with first targets first at $5,500 or Apr-10 highs and later $6,000. Even though we have a three-bar bullish reversal pattern, we should also factor in the bullish breakout pattern above $4,500 and the number of transactional volumes behind the propulsion.
Therefore, unless otherwise there is a strong wave of sell pressure driving prices below Apr-2 lows, then we are net-bullish expecting trend continuation towards $6,000.
