Bitcoin Price Analysis: Bulls are Back, BTC/USD next Stop at $4,500


Bitcoin Technical Analysis–Dec 10

Latest Bitcoin News

Guys, events of the next few weeks is going to be interesting and hints are beginning to print in lower time frames. Though it appears as if bears are firmly in charge and bulls are having a hard time countering marauding bears, series of higher highs and surges of above average volumes could provide a reprieve for bulls. We are pegging this on the increasing presence of institutional grade investment channeling their efforts on infrastructure and most importantly regulators who are beginning to make their presence felt.

Read: SEC Postpones Bitcoin ETF Decision To 2019

Days after the expected news that the SEC will either approve or disapprove VanEck Bitcoin ETF proposal, the SEC has decided to issues a cease and desist order to a crypto fund management firm CoinAlpha Advisors LLC. The order was accompanied by a $50,000 penalty and the reason for this rather heavy penalty at a time when investors are literally suffering is because the SEC is accusing them of acting as an unregistered securities dealer. This was on top of the accusation that the firm’s business model flouted SEC’s laws by availing crypto assets across different states.

It must be noted that the exchange did file for a “Notice of Exempt Offering of Securities” a month after raising $600,000 from 20 investors. However, the SEC could have none of it, turning down the application citing irregularities in its KYC system and failing to ensure the status of accreditation status for their investors.

Interesting Read: The Losses of Bitmain in the 3rd Quarter of 2018 Were Estimated at $740 Million

BTC/USD Price Analysis

Daily Chart

From a top-down approach, sellers are in charge and down 15 percent. But on this time frame, BTC/USD is up in the last day. Now, we expect this revival to continue throughout the next few days and during this period, bulls could drive prices above the $4,000 mark, even retesting $4,500—our main resistance line.

Optimism breeds from the unconfirmed double bar bull reversal pattern of Dec 7-8. Though we expect a follow-through of yesterday’s bulls, any print above Nov 8-9 highs at $3810 or thereabouts could trigger a wave of higher highs towards $4,000 and later $4,500 as mentioned above.

For trend continuation then sellers should quash any attempts of higher highs by driving back prices below yesterday’s lows at $3460.

4HR Chart

The 1900 HRs bar of Dec 7 and 2300 HRs of Dec 8 are hints of a trend reversal. They are important because bought have above average volumes, 22k versus 11k averages and 7k versus 4k average.

Both are also rejecting lower lows printing double bottoms. If anything, this anchors our bullish proposals but for confirmation, we need a break and close above Dec 9 highs of $3810.

There was a retest yesterday and should there be a follow through, then traders should think of buying at $3810, placing stops at $3570 and aiming at $4460.

This is how you will trade BTC/USD pair:

Buy: $3810

Stop: $3570

Target: $4460

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.