Bitcoin traded sideways again on Monday to start off the week, dipping early in the trading session before the buyers stepped in, eventually closing the daily candle just below the $59K level once again. This is a bullish somewhat long-legged doji as Bitcoin continues to exhibit resilience as it flirts with the $60K resistance region, which has already given way on at least one Asian exchange.
(April 5, 2021 8:30PM EST)
Short-Term:
Bitcoin continues to hover around the resistance region, indicating that the buyers are strong and the sellers are running out of juice. We've been consolidating pretty much flat for about a week now, so we should soon see a resolution in one direction or another. All signs point to a bullish breakout above $60K, as it has already done on the South Korea exchange "Kimchi" in which Bitcoin is now trading at $66K - a ~15% premium above the spot price. As you can see in the chart above, Bitcoin's year has consisted of rallies up and smaller corrections which are buying opportunities. If the past is an indication of what's likely to happen again, then the dip opportunity was a week ago and now Bitcoin should see an explosive green candle above $60K any day now.
We should expect a rally of similar magnitude up to the $70K level or maybe even $80K in the near-term. We should expect to see moves in $10K intervals, taking us up to at least $70K in the near-term, although we haven't really seen the market price in the alarming supply crisis going on on digital currency exchanges.
If Bitcoin were to get rejected around the $58K - $60K level and fall back lower, this could reopen the door back down to $50K where Bitcoin will need to find support else risk a drop to $48K where there's the 50 Day EMA.
Daily Newsflow:
JP Morgan adjusts its Bitcoin price target to $130K on the back of "lower volatility"
Bitcoin trading near $66K on South Korea's "Kimchi" - a 15% premium
Satoshi Nakamoto turns 46
Support:
50 Day EMA at$50K.
Resistance:
$60K, $65K, $70K, then $10K intervals up to $100K.
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