Despite all the hype surrounding the recent Bitcoin’s price movement upwards, bears are still at present unless leading digital currency will cross $5,800 -$6,000 pricemark, which would confirm the next mega bull run.
2018 was a difficult year for digital currencies, but the situation has significantly changed this year. During the past few months, majority of altcoins have significantly risen in value and trading volume, following the digital gold – Bitcoin.
Since the beginning of 2019, the capitalization of digital currencies has increased by more than 40%, and currently is fluctuating above $ 170 billion, a significant increase since the beginning of the year when the total crypto market capitalization was below $125 billion.
Bitcoin continues to dominate the market – its share rose above 56% in late April. At the time of press, BTC is trading at $5,100 against USD and is yet to hit the crucial price point.
Despite the fact that hourly chart analysts are filled with optimism and eager to gain short term profits, looking at the weekly BTC/USD chart, a different picture emerges. Furthermore, stories like the recent Bitfinex coverup of $850 million, doesn’t help either.
Excitement aside, there is still no clear confirmation that we are in the next mega-bull run and before we dive into a hourly BTC/USD charts, here is why.
The BTC/USD weekly chart clearly shows that Bitcoin just briefly touched the major resitance line against USD and failed to climb further up.
I tend to strongly agree with one of the top ranked authors on the Tradingview platform, Jacob Canfield’s weekly analysis, in which the trader made a good point. Unless Bitcoin’s price will rise above $5,800 price mark, Bitcoin is still in a bear-ish territory. So far, Bitcoin has failed to break all the major resistance levels and continues to trade bellow the bullish weekly trend line against US Dollar.
There are some good arguments for why Bitcoin is failing to break this major resitance line. One of which is that the digital currency is in a major accumulation phase and the fact that Bitcoin’s market capitalizion is on the rise for the last few month, strongly supports this idea.
According to the one of the most prominent crypto analysts on Tradingview platform, MagicPoopCannon, Bitcoin is now in a retracement phase and could go down as low as $4,100 before it will bounce back, daily BTC/USD chart suggest.
Overall, market behaviour in Q1 of 2019 suggests that cryptocurrencies are entering the bullish territory, but it might take longer until it truly will take off.