Bitcoin and altcoins alike saw very little significant price action over the weekend, with volatility heavily reduced thanks to the lack of action on BitMEX following news of the CFTC investigation. BTC did spike to $11,119 Sunday, but this was quickly followed by a collapse back to $10,320 and an eventual consolidation around $10,620, which his pretty much where the weekend started. Volatility fell over 50% from Friday, which explains why a proper breakout didn’t occur.
Signs Suggest Upward Momentum
To see what might be on the cards this week we can look back two weeks ago, where a big weekly bottoming candle on strong volume suggested that the short-term selling might be over, backed up by a flat candle on the weekly close last night.
Adding to the bullish outlook is the fact that Bitcoin typically endures 30-40% pullbacks in upward trending markets, and we’ve now experienced a 34% peak-to-trough down move from the YTD high of $13,860 down to last week’s low of $9,050. We can also see that the MACD which crossed bearish at the very start of the month is beginning to flatten out and could be a matter of days away from crossing bullish. The last bullish MACD crossover preceded BTC’s run from $8,000 to yearly highs, suggesting that the opportunity to breach all-time highs next month could be on the cards.
Alts Continue to Struggle
Alts have taken a pasting in the past few weeks, barely gaining ground in the periods when BTC has been staying still, suggesting that they will only finally run, if they do at all, when BTC finally blows its top, although when that will be is anyone’s guess. What is for sure is that this is a decent place for a little accumulation, or potentially even averaging down if BTC can’t maintain the $10,000+ range. Prices will inevitably creep higher if BTC surges upward, meaning that those who have bought in at current prices will be in the best place. As usual, patience will be rewarded… but don’t bet against Bitcoin anytime soon.
