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- Bitcoin (BTC) cool, correction in the cards.
- Erik Voorhees of Shapeshift says the bubbles are normal.
Behind record trading volumes and ultra-bullish news, Bitcoin (BTC) is one of the best performers. Still, the positive momentum is slowing down and BTC could return to $ 7,500, or $ 5,500.
Bitcoin price analysis
fundamentals
The bubbles are normal, says Erik Voorhees, CEO of ShapeShift, the crypto-crypto exchange. In a recent interview with Bloomberg TV, the crypto pioneer and one of Bitcoin's early entrepreneurs said that most analysts believe that the so-called winter is over. And as such, there are investors who are cautiously siphoning money into crypto after the deep fall of last year. He adds:
"We've seen four or five of these bubbles at this point, which is largely cyclical. People wait until they feel that the bottom is in, and when they feel as if the bear market is over, then they feel comfortable coming back into the crypto. This is probably the main reason why this happens, but often these things are just the confluence of many people making their own decisions. "
Despite what Bitcoin, cryptocurrency and blockchain represent, asset prices are cyclical in nature. Bitcoin, the most valuable of all digital assets, is no different. After capping in the $ 3,200 range in mid-December 2018, BTC prices jumped 2.5 times. However, with favorable fundamentals and widespread use of the coin, analysts are confident that BTC is trading at a discount, even after more than 150% in 2019.
Chandelier arrangement
After six weeks of almost perpendicular ascent, the Bitcoin bulls (BTC) choke. Prices are up 33.8% from last week's close, but show lower lows in shorter time frames.
Even in this case, the trend is on the rise, which is normal because the prices are correct, the accelerators cooling down. Up to here, there is a $ 2,800 two-bar bear reversal model. All the rest is constant, it's a bear brand and the best is to make it out longer.
At the same time, aggressive traders can offer safe positions at $ 8,500 with secure goals at $ 7,500. In candlestick, there is an overvaluation since four bars are above the upper BB, which favors bears.
Technical indicators
In light of the foregoing, our anchor bar is the bulky and bulky large bull bar of May 11, 2011 – 47k vs. 21k. This is a bull escape bar. To align our business plan with the conditions set for May 15, any decline from the lows of May 11 will further dampen buyers if the bar has high volumes exceeding 47k. This will also invalidate our long position as the bears get behind the wheel, with $ 5,600 targets in a continuation of the downtrend.
Graphic with the kind permission of Trading View
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