Bitcoin Bulls Can Still Fight Back

Bitcoin Bulls Can Still Fight Back

Bitcoin bulls have been hopeful these past few days as the price had been holding the 50-day moving average. However, today it plunged sharply below it and the bulls became fearful. Now that BTC/USD is attempting to break past the 50-day moving average, there is still hope and the bulls can fight back for a bullish close. If the daily candle closes above the 50-day moving average, it is going to be a big win for the bulls and the probability of Bitcoin shooting towards $9.7k would increase significantly. 

This move also seems to have trapped in more retail bears. The past few days have also been tough for the bears because they have been looking for opportunities to enter short positions and leave them be but the bulls keep fighting back. In my opinion, it is no use trying to enter and exit short positions at the moment until we see a retest of the trend line resistance north of $9.6k. This would also provide better entry points to enter long-term shorts. 

Meanwhile, the S&P 500 (SPX) has seen a bullish breakout as well but we need to see more follow through. The price of Gold (XAU/USD) has also shot past the descending broadening wedge which is a good sign for a near-term bullish comeback. That being said, it is important to realize that these moves are not going to last for long and that the larger trend remains bearish. BTCUSDLongs/BTCUSDShorts has broken the long-term uptrend and it is only a matter of time till it loses the Ichimoku cloud support and enters a formal downtrend.

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