Bitcoin endured a volatile weekend and failed to end the week over $5,300, bringing with it suggestions that the current resistance is too strong and a fall to the mid $4000s could on the cards. This seems to have put alt season on hold for the time being while Bitcoin makes up its mind on its next move, with the weekly rejection bringing the bears back out to play again.
Bitcoin’s Balancing Act
Saturday saw some more positive momentum following last week’s crazy price action, as BTC put on another $200 before a sharp drop threatened to undo much of its recent good work. The bulls stepped in however and halted the sell-off after only $300, with the price wicking down to the $4,900 area before rebounding back up to where it had been prior to the sell-off, a positive reaction compared to other sell-offs we’ve seen in the last fifteen months.
Sunday saw the recovery turn into a gain and the price top out at $5,300 in the early hours of Monday. Although this turned the weekend into a net positive, some are preaching caution that the current price level cannot be sustained:
I see zero reason to be bullish here. This shit is going to dump imo, volume is diverging right into a strong resistance level.
Buying interest is diminishing, the smarter players are waiting to buy on a pullback, not at resistance.
Impulsive moves aren’t bullish… pic.twitter.com/c9Wnzljkwm
— CryptoBroken (@cryptobroken) April 7, 2019
The $BTC move we’re having now reminds me of when we bounced at 6.6k and rallied to 10k with NO PULL BACKS.
Pump > Consolidation > Pump > Consolidation > Pump > Consolidation > DUMP TO NEW LOWS
— ??????? ? (@Thrillmex) April 7, 2019
BTCUSD Looking for Wave (4) at 4500
— Prime Trader [WCX] (@IdeasPrime) April 7, 2019
Some decided to engage in a spot of bear baiting and focused on the potential upside instead, reflecting the delicacy of the current situation:
— red (@redxbt) April 7, 2019
Remember this ?
I’m expecting a breakout north towards the end of the weekly close – a quick fakeout to trap longs and a quick reversal.
Beware, there is chance price might overshoot the 5.5 supply zone. pic.twitter.com/ExqVLAknQy
— C3P0 [no Wookies left] (@__BTC3P0__) April 7, 2019
Alts Wait on the Sidelines
Altcoins spent the weekend hiding from BTC as it went about its business, with no significant moves over the period. Happily, however, there were no ultra-negative reactions to Bitcoin’s flash sale late Saturday, with most keeping a healthy price versus BTC as Bitcoin fell and rebounded. Past price drops from BTC have seen alts tumble extremely quickly in tandem, so the fact that they held their ground shows fewer people panic selling, reinforcing the idea that there is more faith in the market at the moment.
Current indicators suggest that there is still at least a partial alt season ahead of us, so it makes sense to have a portfolio including alts and BTC right now, but having a little fiat on the side to buy any dip would seem to be a good hedging position as we wait to see what Bitcoin has in store for us this week.