Bitcoin All Set To Rally Towards $8k

Bitcoin has been trading sideways for a while and now is at a point where we can expect a major move to the upside. It is printing a large bull flag which could easily see BTC/USD rally towards $8k from here. This would be the perfect setup just around halving to get a lot of traders excited once again. Under a more bullish scenario, we can also expect the CME Futures gap to be filled which could push the price slightly past $9k. It is important to realize here that for now BTC/USD remains above the 200-moving average on the 4H time frame and the bulls are fighting for control.

It would be unreasonable to get carried away by the halving hype and to think that Bitcoin is going towards a new-all time high from here. However, at the same time, it would also be unrealistic to start blindly shorting the market thinking halving is just going to be a non-event. It is too big of an event to be of no significance. This is the opportunity that the market makers and whales have been waiting for to trap in the retail bulls and they are going to fully capitalize on it. The way this works is not in the form of sustained rallies but sideways movements followed by big pumps. It has happened too many times now and this is a good time to get used to it.

The S&P 500 (SPX) is doing exactly what we predicted it would and seems to be on the way to test the 61.8% fib retracement level once again. For the cryptocurrency market, this would make it easier for the bulls to assume control near term. A few big pumps to the upside would also liquidate a lot of shorts and scare the bears away to discourage them from shorting the market. Altcoins are expected to outperform Bitcoin during the upcoming running up. Meanwhile, Bitcoin dominance (BTC.D) faces the risk of further downside near-term but we can see on the weekly chart that it is trading very close to the 200-moving average and it is only a matter of time before we see Bitcoin dominance (BTC.D) begin a new uptrend to return to pre-2016 levels, which would prove to be catastrophic for the cryptocurrency market in general and altcoins in particular.