The price of Bitcoin is beginning to appear bullish at the onset of the new week. The reason that is happening is because of the bullish close on the weekly time frame. BTC/USD closed above the 21-week exponential moving average and has now started the day in green. On the 4H time frame, we can observe that the price still risks a fall down to the $8,000 level which corresponds to the 61.8% fib level and simultaneously the 200-moving average. Despite the temporary bullishness, we expect that move to come to completion. However, Bitcoin will still be waiting on the next big move to assume a definitive direction.
The price of Ethereum (ETH) just like Bitcoin is now waiting for a decisive move. Recent bullishness has raises hopes of ETH/USD retesting the 200-day moving average once again. However, the odds of that happening are low because if the price tests that level again, then it will be expected to break past it. In my opinion, the market makers and the whales would want to trap in more bears before they do that. However, at the same time we also need to acknowledge that these big players are now running out of time to make their moves. The next month is going to be very important for global markets and will therefore have a strong impact on the cryptocurrency market as well.
Bitcoin (BTC) and the rest of the cryptocurrency market is known for its dependence on the stock market. Developments in the next month regarding the Democratic presidential primaries as well as the Trump impeachment is expected to lead to high volatility. It will not be surprising to see an October, 2019 styled move once again. It does not have to be such an aggressive pump but it will likely be a similar misleading move. In my opinion, this is not the time to be going long or short but to wait for direction. WTI Crude Oil (USOIL) and the S&P 500 (SPX) are both waiting for a direction as well. Bitcoin (BTC) remains above a key trend line support for now and until and unless that is broken, we have no reason to be overly bearish on the market.