Bitcoin (BTC) bulls remain in control as the market eyes a recovery. We can see that BTC/USD has begun its recovery and Ethereum (ETH), Ripple (XRP) and other altcoins have followed. Litecoin (LTC) is trading a lot higher than most large cap coins while some like Binance Coin (BNB) and Bitcoin SV (BSV) seem to have topped out short term as they rallied a lot higher in the past. It is beginning to get clear that the bulls are not ready to give up just yet and the market might rally further.
Taking a look at the 4H chart for BTC/USD, we can see that the price is still trading in Phase C of the Wyckoff Distribution Cycle. There is room for a rally towards $10,000 and a lot of traders are expecting it. The Crypto Fear and Greed Index is at 82, down one point from yesterday just as it was down one point from the day before. This tells us that a lot of people are very optimistic and not ready to give up just yet. The Crypto Daily Indices for large, mid and small cap coins are all down for the past 24 hours. This means that the market has been brutal on most coins in the near past and traders might have been better off sitting on fiat or stablecoins.
A look at sentiment on Twitter shows us that a lot of traders are very excited about Facebook’s Libra coin which means it could still factor into this rally and the price might rally towards $10k towards the upcoming weekend. Taking a look at the economic indicator, we see that there is nothing much of significance to Bitcoin (BTC) except for Mario Draghi’s speech today. That event led to a lot of volatility and we saw the price follow the same path as we project in our last analysis on Bitcoin (BTC). We might see this temporary rally in EUR/USD continue for a while which might give BTC/USD room to complete the rally towards $10k but long term, the Dollar Currency Index (DXY) is better positioned to embark upon a sustainable uptrend.