BTC: Aftermath of the Pump - Why We Still Have More Room to GrowBitcoin has witnessed a strong rise in price action over the past few days! And our previous analysis has been aligning perfectly with current sentiment. Just based on pure technicals, we still believe that there is room to grow, despite strong resistance in this area. We are seeing possible growth after a small correction/consolidation in these regions due to several factors that we believe will bring the price up even further into the lower $11,000 region:
1. Strong breakout of the RSI downtrend that was creating lower highs.
2. MACD Histogram is now printing an absolutely clear golden cross that is giving us more momentum to the upside - both volume and price.
3. This new downwards parallel channel is being played out perfectly and the break of the middle line was a big obstacle that was easily taken over by the bulls.
Playing the relief bounce does not make us immediately bullish for the longer term. We can't assume Bitcoin will go up to 20K within any time frame. In fact, we have to play each time frame since they all have a domino effect onto the larger time frame - this is why we must be cautious when we are overly euphoric about the market. Following the trend is absolutely CRITICAL. While short term gains are important, we still want to emphasize that a drop down to any of the major support zones is still considered incredibly bullish . We have consistently noted that we are still going to be seeing mid 9K levels and will be monitoring the situation on how the market reacts at that certain period of time. Too many people are making predictions way ahead of the spectrum when they do not know what will happen in the immediate term.
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