Bitcoin (BTC) Diamond Formation Sparks Hope For Swift Bullish Recovery

Bitcoin (BTC) has been trading sideways for the past few weeks which has made a lot of investors pretty nervous because the last time something like this happened, we saw the price crash massively towards a new yearly low. There are still a lot of analysts and investors that expect the same thing to repeat but we have reasons to believe that none of that may happen this time. Bitcoin (BTC) has been trading inside a symmetrical triangle for the past few weeks but it was difficult to see which way the price may eventually break out. However, now we have some clarity as BTC/USD has printed a diamond reversal formation which results in a move back to where the price fell or rose from most of the time.

As we have a decline in this case, it means that the price could break above the diamond and exit the symmetrical triangle at the same time. After that, we believe that the price would find support atop the symmetrical triangle and consolidate before its next move to the upside. There are a lot of opinions as to where we stand in connection to the 2014 market cycles. Some believe that Bitcoin (BTC) has already found a bottom; others believe the price has yet to fall down to $3,000 in order to find a bottom. Either way, the price has to rise towards the 200 Day MA or the 21 Week EMA before it can fall further. At this point, a correction to the upside has been long overdue and we expect one as early as next week.

The reason we have seen a ray of hope in BTC/USD for a bullish comeback all of a sudden is because major markets are already getting out of a state of confusion and making decisive moves. The volatility index is down around 8% today as confusion subsides and certainty returns back to global markets. The Euro made its move against the US Dollar in the past few days which in the coming day could lead to a major rally that would last all the way till July, 2019. A weak dollar means a higher price for Bitcoin (BTC) in dollars. If it were not for the steady manipulation in the market that anyone with a keen away could have seen the past few weeks in particular, we would already have seen Bitcoin (BTC) react to the rise in EUR/USD.

It is important to observe that there is some serious manipulation at play. However, it is even more important to observe why this manipulation is at play. This manipulation is fueled by fear and greed at the same time. The reason it is fueled by fear is because there is uncertainty in major financial markets despite short term clarity. Major traders and investors on Wall Street and elsewhere know that this house of cards is eventually going to collapse. They can buy some time but they cannot prevent the imminent collapse. So, they are manipulating the price to buy time to accumulate more Bitcoin (BTC) now that they realize that it is not an experiment or a joke. It is also fueled by greed because they saw the gains some of their risk-taking fellows made during the previous cycle. They definitely want a part of that so they are keeping the price on ice while they accumulate. However, they cannot do that for long. The way this month ends is going to be crucial not just for Bitcoin (BTC) but for most major financial markets.