(BTC) has recently developed an interesting pattern of completing a bullish and bearish cycle on the sixth of every month in an alternating order. As we can see in the chart above, a fall is followed by a rise. This has happened twice before and is expected to happen again now on the 6th
of June, 2018. This time Bitcoin (BTC) will finish a bearish cycle and I expected to begin the next bullish cycle at least till the end of 6th
of July, 2018.
This pattern of rise and fall is also supported by other patterns on the chart that signal a bullish reversal. The support line has also held firmly and if this pattern of alternating rise and fall ensues, Bitcoin (BTC) could very well make new highs by the end of the year. The RSI is recovering from oversold levels and has now approached a normal. Bitcoin (BTC
) is currently at a favorable point for bullish entries. The price broke a long term resistance as it break past the downtrend line in April, 2018. This was a big accomplishment for the bulls but the lack of confidence pulled the price back to the support line. Currently, the price is just above the support line and appears to be all set for a bullish comeback but the reality is, there are not enough bulls in the market.
The past few months have been devastating for the price of Bitcoin (BTC) and a lot of investors are still running scared. Institutional investors are looking for more clarity regarding regulations concerning cryptocurrencies and also safer ways to invest and store their coins. As for retail investors, most of them comprise of first time investors who have never traded any financial asset before. So, when they saw that Bitcoin (BTC) is making 20% gains every day, they thought this could go on forever and jumped with both feet, only to find the carpet pulled under from their feet. Big investors have always played small investors as cannon fodder and have gotten away with their schemes even in regulated markets like forex or the stock market. Cryptocurrencies
is a new market with no proper regulations which means it is natural to expect that those who can afford to not play by the rules, most likely won’t.
While it may be easy for market makers and manipulators to influence the price of Bitcoin (BTC) short term, it is getting difficult more than ever to influence its price long term. For an asset with limited supply, like Bitcoin (BTC) that means the price has to go only in one direction long term and that is up. As for short term, the current market outlook favors a buy at this time. BTCUSDLongs is currently trading in a falling wedge, a bullish indicator which means the price should uptick soon as it breaks out of that wedge. On the other hand, BTCUSDShorts is trading in a rising wedge, a bearish indicator signaling a take profit period for the bears which should further increase the price of Bitcoin (BTC) in the near future.