Weekly Review: Bitcoin Makes Its Move

Bitcoin eyes $6,000

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May 3, 2019 Welcome to the weekly edition of the CoinDesk Markets newsletter! Every Friday we will review our cryptocurrency price predictions posted during the week via CoinDesk Markets Twitter  or our private room on StockTwits, the CoinDesk Dojo.  "Trades You Missed" will feature our favorite trade ideas or technical analysis insights that accomplished impressive gains, where as "Trades We Missed" will feature those that took a turn for the worse. Wins and losses are both part of the trading game, so we hope you will learn how to replicate our successes and minimize losses!   Bitcoin Prints 5.5-Week High BTC/USD: Price: $5,734 | MCAP: $102 billion | Outcome: On the rise as expected Why we were intrigued: Bitcoin was on the defensive in the last week of April, having confirmed a bearish divergence of the relative strength index with a sharp pullback to $5,000 on April 25. That pattern had yielded significant price pullbacks in 2017 and 2018.  This time, however, the historically strong support of the 30-day moving average (MA) quickly rescued the bulls. The price bounced up from the key average on April 30, signaling a strong bullish sentiment.  That forced us to consider the possibility of BTC rising all the way to $6,000, which at the time looked bleak, as the RSI was still holding well below the trendline representing the bearish divergence. Put simply, the bearish RSI divergence was still valid and could have played spoilsport. As a result, our analyst had called attention to the RSI trendline, stating that its violation would invalidate the bearish RSI divergence and strengthen the case for a rally to $6,000. The Trade (or lack there of) The Result The RSI's violation of the falling trendline has put a bid under the cryptocurrency, as expected.  The invalidation of the bearish divergence happened in the early European trading hours when bitcoin was trading at $5,530 and now the cryptocurrency is changing hands at $5,730 on Bitstamp, having printed a 5.5-month high of 5,796 a couple of hours ago.  Looking forward, the cryptocurrency may consolidate near the resistance at $5,780 (June 2018 bottom) for a day or two, as the RSI on the 4-hour and hourly chart is reporting overbought conditions before breaking higher to $6,000.  The case for a rally to $6,000 would weaken only if and when the price finds acceptance below the 30-day MA, currently at $5,226.    MonaCoin Falls Flat MONA/BTC: Price: 0.000019054 BTC | MCAP: $69.3 million | Outcome: Trade entry not triggered Why we were intrigued: Given April 28's decent price gain of 21 percent which was backed by strong volume, there was reason to believe a continuation was possible given the Chaikin Money Flow produced a reading above 0 for the first time in 742 days. Total volume was also at its highest point since Dec. 17 a reading of 2.9 million according to Bittrex exchange data strengthening the case for another leg up at that time. The trade, however, was never executed as a required breakout above the 100-period moving average at 0.00030000 BTC never occurred and thus overall risk was significantly reduced.  The Trade (or lack there of)     The Result   As can be seen below, the weekly chart demonstrates an 11.78 percent fall in its price in spite of a bullish CMF reading above the neutral 0 line. The good news for the bulls is, as we approach the weekly close volume appears to be lacking for the bears who've managed to exhaust themselves period to period as can be seen on the current candlestick price range. So there is merit in considering another price rally above the aforementioned 100-period MA at 0.00030000 BTC in the near future, should these levels continue to hold above the previous week's dip low.       We're excited to announce the launch of the CoinDesk Dojo, a premium subscription part of StockTwits' recently announced Premium Rooms product. Ask the analysts—Omkar, Sam and Seb—questions about charts and talk with other traders looking to profit off the volatility of the crypto markets.  Create an account on StockTwits and then subscribe! Subscribe Here   Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. Copyright © 2018 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? You can update your preferences or unsubscribe from this list