It’s really time for Bitcoin (BTC) to put up or shut up, as markets around the world continue collapsing in the face of COVID-19 reactions. Bitcoin in particular is on its knees, shaving the skin off of the final uptrend that can possibly save it from pure oblivion, around $5k.
Starting the weekly, we see that Bitcoin is just now fighting to hold a level that is probably one of the most critical levels in its entire price history. This level surrounds a multi-year uptrend, the Bitcoin Bull as some people call it.
Less important, there is also a significant support/resistance level here, as well as the 200-week moving average. The deep buy wick that we have already seen is, perhaps, some glimmer of hope that the level can ultimately survive.
Turning to the monthly – something I’ve never done here – we can note two things. The first is that, if support around $5k is lost, the next major inflection/support zone is down squarely at $3k.
The second thing is the notable volume gap we see from about $6.1k to $4.6k. For our purposes, this is a good thing, as it increases the likelihood that Bitcoin will be able to remain in this zone for the rest of 2020. This is because volume gaps tend to want to be filled and tend to attract trading – although, by the same token, we might be worried about the volume gap at $3k as well.
Finally, if we take a look at Bitcoin and altcoin dominance, we see that the previous trends have been fractured with no new one emerging yet. The previous risk-on trend – Bitcoin down, alts up – has clearly been halted with Bitcoin coursing up again from 61%, and altcoins holding at 7%.
Anecdotally, we might expect alts to continue back down and Bitcoin up, as risk flies away from all markets as fast as it can – crypto proving to be no exception, so far.
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