Bitcoin (BTC) is aggressively trading above $7,500 as of now which is confidence inspiring and definitely a good sign for long term. It has also formed higher highs and higher lows and the price action seems to be on the verge of a reversal. However, it may yet take some time. Currently, Bitcoin (BTC) is trading in a rising wedge with very low volume. The RSI is at overbought levels on the 1H chart. This means that the price will likely break below the falling wedge to retest previous levels.
The bearish voices calling for a $2,000 or $3,000 Bitcoin (BTC) seem to have silenced for now but any substantial bullish action has yet to be seen. This does not mean that the bulls are scared though. The more likely explanation is that the bulls are greedy. They are waiting for the perfect buy because they know this is probably the last time Bitcoin (BTC) will see such prices. It does appear that the price has to settle lower for the next bullish impulse to come into effect. While the past few days might have indicated that Bitcoin (BTC) is probably in the clear, it certainly does not appear to have had any effect on the bulls.
On the 4H Chart for Bitcoin (BTC), it can be seen that the price could still drop to the support line near a price of $6,900 in order to complete the three bounces pattern and establish a firm ground for the next rally. Bitcoin (BTC) is likely to find a lot of buyers near this support line which has not been breached yet. A fall to $6,900, if it does occur, might be a slow one, extended all the way to 6th June, 2018. This would coincide with a popular theory that states that Bitcoin (BTC) prices complete alternating bullish and bearish cycles by the 6th of every month. This time it will be completion of the short term bearish cycle and should lead to a short term bullish cycle after the 6th of June, 2018. This could most likely be the beginning of the next bullish phase for Bitcoin (BTC).
The big picture continues to remain intact and Bitcoin (BTC) seems to have almost completed a three bounces pattern. Next week will be crucial for Bitcoin (BTC) as it will determine the direction the price will move after completing this pattern. It is possible for Bitcoin (BTC) to trade sideways for a while before finding buyers to begin a new bullish phase. Technical as well as fundamental indicators are all in favor of Bitcoin (BTC) this time but the market sentiment continues to be negative. Renowned Bitcoin (BTC) critic, Peter Brandt recently tweeted about how when a while back he called Bitcoin (BTC) bearish everyone attacked him, but now that he is calling Bitcoin (BTC) bullish, most people are still attacking him! He does have a point though. The majority seldom get it right. It is a zero sum game; somebody has to lose in order for others to win. While the negative sentiment might continue to loom over for quite some time yet, recent price action gives opportunistic bulls a chance to fill their bags before the next rally.