BTC/USD Short-term analysis: forming the "Golden Cross"
Hey everyone! we hope that you had a wonderful Easter break.
We are currently coming to a very interesting stage in the Bitcoin market. For those of you who were at our first Meet up in Riga, the graph of the BTC / USD will look very familiar.
This is a daily and weekly charts of BTC/USD from Bitstamp Exchange. The green and red area are allocated in accordance with Bob Loukas theory of bitcoin cycles (https://www.youtube.com/watch?v=ivWdOztDkv4)
We overlayed this chart with our own analysis and added support and resistance Fibonacci levels and added 200 and 50 Moving Averages (MA)
1) We are currently forming the "Golden Cross", which is a strong bullish signal of the long term growth. (the Last signal of that kind was in October 2015)
2) After the latest macro downtrend, the first golden cross was in July 2015
3) BTC price crossed 200MA and is trying to reach 6000$, which is a psychological and technical resistance level.
4) In the short term, the price went above the accumulation area, however, it is currently stuck next to the 50MA on a weekly chart.
The price may reach 6000USD by the and of the month and maybe a little higher with a small spike (shadow). This is usually accompanied with the news from the media "That now is the time to buy bitcoin" And this is exactly the place where large investors who bought BTC at 4000 would like to sell it. That is why we believe that the price will bounce back from 6000 and in the next month or even two will return into the accumulation area.