Welcome to another weekly cryptocurrency market analysis. As you might know, it is our tradition at Quidax to analyse and discuss crypto market trading using market fundamentals, market behaviour and sentiments. While for technical analysis, we adhere strictly to demand and supply.
Bitcoin has continued to maintain it’s current price above $5,000 with an increase in supply above 17.65m worth about $3.56B trade in 24hours ( from coincap). This shows that the demand has surpassed the expected supply and the uptrend is eminent. Then from the technical analysis standpoint, On the daily time frame, we can clearly observe that the price has approached the supply zone again and technically we anticipate short trading.
We expect a bull run if the price breaks above the supply zone or a bearish trend if the price is rejected on the zone.
From last week technical analysis we saw a clear price and Moving Average Convergence/Divergence (MACD) on the 4 hour time frame as the coin price approached the weekly time frame supply zone. As we expected this price dropped as the supply gained more dominance over demand, but as of today, the coin is clearly showing price consolidation with the price hovering between $72-$82. Our expectations is still to exercise patient until we get to a daily demand zone of $61 before buying the coin again.
Last week, ‘the sell indication was confirmed when a clear divergence was spotted on the 4-hour timeframe with the price and MACD indicating that the bullish strength is fading out and the buyers are taking their profits by selling off the assets. This simple analysis can be justified as price drops from a last week high of $189 and hit a low of $161. We expect consolidation around this price. However, the price may fall to the demand zone on the daily chart between $144-$146 where we expect buyers to pump again.’ These words are exactly from last week analysis, and as can be observed in this week’s market behaviour, price didn’t get to our proposed zone of entry but picked up demand at $154 which is a demand zone on the 4hour time frame the price rallied made a high of $175 and its expected to go higher.
Looking at the week analysis of the previous week in which we stated that ‘We expect a bullish ride this week but we are advised to buy when the bearish momentum is exhausted and the demand is in control.’ Guided by this analysis, the price made a clear bullish divergence on the 4 hour time frame and maintained a bullish momentum until a pullback pushing price back to $0.32. This is a good point of entry as we expect the upward momentum to continue.
That’s all for this week folks, until next week for our next weekly analysis. Cheers to a Happy Easter!
Disclaimer: This article is provided for information purposes only without regard to any particular user’s investment objectives, financial situation, or means, and Quidax is not soliciting any action based upon it. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Adviser.