It was a green day for Bitcoin, yesterday (April 23rd). The token spent the day enjoying a bullish trend that took the price up to $5500. Bulls dominated for the most part, but they couldn’t bring the price any higher or sustain the maximum price. The coin’s value fell back to the 26-day EMA support level. The overall result is that we’ve seen Bitcoin bouncing between 5k and 5.4k for two days.
Technical analysis standard lore says the price will increase again until it tests the USD 5,340 resistance level, the point at which the price either goes back down or skyrockets. At the same time, the MACD line and the signal line are signaling “buy” since they’re above the zero lines. The price is above both the 12 and 26 days EMA which is yet another signal of a bullish trend.
BTC/USD in the short term is bearish
The 1-hour chart shows a bearish trend. The bulls went all the way to USD 5.340,00 but got stuck at that level, and then the bears took over and sent the price back down by USD 100,00. The hourly EMA signals (12 and 26 days) point to a falling price.
If the bearish trend goes on and the support level is broken, a price of USD 5.100,00 is not out of the question.
The MACD and signal lines are above the zero line; so there’s an active buy signal. But the 12-day EMA is in selling mode because the price is lower than the indicator and than the 26-day EMA as well.
So what does it all mean? This is not a good day to make a buck trading BTC quickly. If you get in the action, chances are you won’t see any profits if you’re not willing to wait at least for a couple of hours, assuming that you’ll be able to gain anything. Why do we say this?
Because trading in Bitcoin is always risky. Also, weekends are mostly slower in the cryptocurrency market, all institutional players are off the game because Forex, the stock market, the commodity markets, and every traditional financial market go offline today at 17:00, New York time and won’t come back online until the Asian session starts again on Sunday, when it’s 9:00 in Wellington, New Zealand. Liquidity decreases over weekends which increases volatility.
This article does not constitute financial advice of any kind, but it’s merely documenting our market observations, the fact is that nobody will become a Bitcoin millionaire over this weekend. No, it’s not written in stone, but we’re pretty sure.
So the smartest move would be to close down all your green postures and be patient. Next week will be a new week, and as it progresses, the market conditions will be more evident than over the weekend, as always. Weekend trading is riskier than average, and only seasoned experts who know to take advantage of sheer market noise can make money. If you’re more of a hobbyist, patience is your friend.
Image courtesy of Pixabay.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.