Sirwin
Sirwin

Bitcoin NEEDS to Hold This Line (Apr 29 Forecast)

By Biz Wisdom | Crypto Daily FX | 29 Apr 2021


Bitcoin fell a bit on Wednesday, initially rallying just above $55K before pulling back, closing the day just under $55K with a small inverted hammer. This isn't a great-looking candle but what's important to note is the higher high and higher low.  6bbda836a8f9edab06e3290a86624aa0d6894c25228b6a69c314833c5cb6961d.png(April 28, 2021  8:30PM EST)

Short-Term: 

We are back above the 50 Day EMA now so the real test will be to see if BTC finds support at the 50 Day EMA or falls back below it. Staying above the 50 Day EMA is obviously bullish and we should then look to $55K and $60K. If BTC breaks below the 50 Day EMA, then we could be entering a more prolonged consolidation period in which Bitcoin oscillates in the $40K - $50K range for a while. 

 

 

The overall trend is still up so there's no cause for concern, and dips are still buying opportunities, as anyone who bought BTC last week under $50K is now up ~10%. The uptrend is not in question unless Bitcoin breaks below $40K or ultimately the 200 Day EMA around $35K, which should be our absolute floor at this point. As long as we stay above these levels, we're in bullish territory.

 

 

 

It's easy to let bearish sentiment distract from your vision if you don't have a sound technical strategy. 20-30% drops are significant and not uncommon in crypto, so it's especially important to zoom out and look at the charts to keep the bigger picture in the front of your mind. 

 

 

RSI has stabilized a bit after falling, currently at 47 on the daily chart. 

 

Long-Term: 

Below is the Bitcoin Dominance (BTC.D) weekly chart, showing Bitcoin's plummet in dominance to levels not seen since mid-2018. This is no concern because as the crypto space grows, so too do other projects with legitimate use-cases which take some market share. d5cec5f94250bba0c6ad61b593bc87673781b32cacbdaf95cbf8f486ff5c90cb.png

With BTC.D now at a major support level, we should see buyers start to step in and a bottoming pattern start to form before Bitcoin's next macro wave up to probably around 70 - 72% BTC Dominance. This will likely be the longer-term wave that takes BTC to $100K or above before a subsequent alt rally soon to follow thereafter. 

 

 

Support: $50K, which was tested and held.

Resistance: $60K, then $70K, $80K, then $100K. 

 

Buy Bitcoin here.

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Biz Wisdom
Biz Wisdom

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