Bitcoin Ranging as Alt Season Takes Hold
This is informational, not really TA.
Bitcoin continues to range the high 50s, and in week 6 of testing 59-60k but no supported breakthrough. Bitcoin currently sits at ~58.8 at the time of writing this, firmly within it's best supported price range in the current pattern. The longer we range the 50s the more momentum altcoins gather and the more market dominance that Bitcoin loses, now at its lowest point since September. There are indications that whales and industry are using this to continue accumulating both Bitcoin and strong altcoin pairings, with exchange outflows healthy, and no signs of inflows/miners taking profit, etc. I expect we'll see pattern continue into the weekend.
Currently Bitcoin is testing support on the 20MA, which also aligns with the top support (1) and appears to be a strong demand zone. Failure to bounce from there will see it retest the next support zone by volume (2), around 58-57k. And if it fails to stop there, the lowermost support in this pattern is 56.2-55.5k.
If you zoom out you'll find around 56k to be the strongest support for the month of March. Failure to hold there will lead to deeper corrections and possibly retesting 53k which is also the bottom of the current supertrend.
My opinion- retail is currently exhausted in their ability to move Bitcoin's price. It remains here either because industry wants it here and will continue to accumulate, or industry is mostly idling to see what happens next. In any case bulls don't have the momentum needed to breakthrough resistance above 59k, but bears lack the strength to drive price down, as last week's test of 50k revealed. This is a perfect storm for altcoins as they will continue to pump until we see a decisive movement from Bitcoin .
Indicators:
Bearish: VFI: Indicates heavy bearish sentiment, and divergent from the price
Bullish: Stoch RSI: neutral with a small bullish crossover today
Neutral: Exchange Inflows: No indication of large inflows that could indicate a local or cycle top
Bullish: Pi: 11DMA has not crossed over the 350DMAx2 but they continue very close to each other. At this time its not indicating a local or cycle top.
Bullish: Fear & Greed: We are sitting with a slight greedy bias, up from a neutral reading last week. However we are continuing to range lower than we saw in earlier points in this bull cycle.
Bitcoin continues to range the high 50s, and in week 6 of testing 59-60k but no supported breakthrough. Bitcoin currently sits at ~58.8 at the time of writing this, firmly within it's best supported price range in the current pattern. The longer we range the 50s the more momentum altcoins gather and the more market dominance that Bitcoin loses, now at its lowest point since September. There are indications that whales and industry are using this to continue accumulating both Bitcoin and strong altcoin pairings, with exchange outflows healthy, and no signs of inflows/miners taking profit, etc. I expect we'll see pattern continue into the weekend.
Currently Bitcoin is testing support on the 20MA, which also aligns with the top support (1) and appears to be a strong demand zone. Failure to bounce from there will see it retest the next support zone by volume (2), around 58-57k. And if it fails to stop there, the lowermost support in this pattern is 56.2-55.5k.
If you zoom out you'll find around 56k to be the strongest support for the month of March. Failure to hold there will lead to deeper corrections and possibly retesting 53k which is also the bottom of the current supertrend.
My opinion- retail is currently exhausted in their ability to move Bitcoin's price. It remains here either because industry wants it here and will continue to accumulate, or industry is mostly idling to see what happens next. In any case bulls don't have the momentum needed to breakthrough resistance above 59k, but bears lack the strength to drive price down, as last week's test of 50k revealed. This is a perfect storm for altcoins as they will continue to pump until we see a decisive movement from Bitcoin .
Indicators:
Bearish: VFI: Indicates heavy bearish sentiment, and divergent from the price
Bullish: Stoch RSI: neutral with a small bullish crossover today
Neutral: Exchange Inflows: No indication of large inflows that could indicate a local or cycle top
Bullish: Pi: 11DMA has not crossed over the 350DMAx2 but they continue very close to each other. At this time its not indicating a local or cycle top.
Bullish: Fear & Greed: We are sitting with a slight greedy bias, up from a neutral reading last week. However we are continuing to range lower than we saw in earlier points in this bull cycle.
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