Bitcoin has recently developed an interesting pattern of completing a bullish and bearish cycle on the sixth of every month in an alternating order. As we can see in the chart below, a fall is followed by a rise. This has happened twice before and is expected to happen again now on the 6th of June, 2018. This time Bitcoin will finish a bearish cycle and I expect to begin the next bullish cycle at least till the end of 6th of July, 2018.
This pattern of rise and fall is also supported by other patterns on the chart that signal a bullish reversal. The support line has also held firmly and if this pattern of alternating rise and fall ensues, Bitcoin could very well make new highs by the end of the year. The RSI is recovering from oversold levels and has now approached a normal. Bitcoin is currently at a favorable point for bullish entries. The price broke a long term resistance as it break past the downtrend line in April, 2018. This was a big accomplishment for the bulls but the lack of confidence pulled the price back to the support line. Currently, the price is just above the support line and appears to be all set for a bullish comeback but the reality is, there are not enough bulls in the market.
The past few months have been devastating for the price of Bitcoin ( BTC ) and a lot of investors are still running scared. Institutional investors are looking for more clarity regarding regulations concerning cryptocurrencies and also safer ways to invest and store their coins. As for retail investors, most of them comprise of first time investors who have never traded any financial asset before. So, when they saw that Bitcoin ( BTC ) is making 20% gains every day, they thought this could go on forever and jumped with both feet, only to find the carpet pulled under from their feet. Big investors have always played small investors as cannon fodder and have gotten away with their schemes even in regulated markets like forex or the stock market. Cryptocurrencies is a new market with no proper regulations which means it is natural to expect that those who can afford to not play by the rules, most likely won’t.
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This article is published with analysis contributed by Fakhan
Disclaimer: Cryptocurrencies investments are full of speculative and market risks. This article is only for information purposes and not an investment advice. Please conduct your own thorough research before investing.