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In one way or another, Bitcoin is now stable. And it wasn’t always calm waters and thanks to its whipsaws, analysts as well as traditional market influencers found new terms describing the world’s most valuable crypto asset. Jamie Dimon called it a scam before his corporation ironically launched the first ever inter-bank settlement private token, the JPM Coin.
Read: Bitcoin Won’t Be $3,000 Cheap Again, Crypto To Trend Higher In April
However, it is Charlie Munger, the vice chair of Berkshire Hathaway–whose head, Warren Buffet, is against the idea of crypto, that stole the show after calling it rat poison. Weeks later, Warren Buffet said Bitcoin was Rat Poison squared. Whether Bitcoin is a scam, a fraud, a Ponzi or rat poison, enthusiasts and builders are undeterred.
For true believers eyeing the overall prize, it’s all about adoption which is encouragingly gathering pace and gaining traction especially after the launch of the experimental Lightning Network whose capacity now exceeds 1,000 BTC processing more than $4 million as a result. It has been a year or so after roll out but the benefits are beginning to permeate.
Also Read: Here’s why The Bitcoin Lightning Network Capacity Exceeds $4.2 million
More merchants are now accepting cheap, LN payments while those in Twitter can receive instantaneous tips via Bitcoin LN after Jack Dorsey endorsed Tippin.me.
BTC/USD Price Analysis
After a stellar week, Bitcoin prices are up but stable in the last day. Prices are up 1.6 percent from last week’s close but likely to add more in days ahead.
From a top down approach, sellers have the upper hand and the situation has been made worse by the failure of buyers to completely reverse Feb 24 draw downs.
As it is a bear bar, wide ranging and supported by above average volumes, bulls will be effectively in charge if prices close above Feb 23 highs as laid out in previous BTC/USD price analysis.
Trend and Candlestick Arrangement: Bullish in short-term Within a Minor Breakout
Pattern
In the short-term, Bitcoin prices are held within a $1,300 consolidation with resistance levels at $4,500 or Dec 2018 highs and supports at $3,200. Those are 2018 lows from where prices found support and rode higher. Regardless, it appears as if Bitcoin (BTC) bulls have a temporary advantage over bears and trading within a bullish breakout pattern with supports at $3,800.
Going forward, we shall borrow cues from our previous BTC/USD trade plan while expecting gains above $4,500 now that prices appear to be banding along the upper BB albeit with low participation levels. All the same and as emphasized before, every low should be a loading opportunity and the only time this position will be null is when prices dip below $3,800 cancelling projections based on the double bar bull reversal pattern of Mar4-5.
Volumes: Bearish
Despite our optimism and expectations of price revival, our anchor bar is based on Feb 24. It is bearish and fueling this liquidation are high volumes at 36k versus 19k average. Since the past three weeks prices are trading within this bar’s high low, it means sellers have the upper hand unless of course there is a spike in prices driving prices above $4,500 complete with high transaction levels exceeding 40k. it is only through this route that bulls of Feb 18—37k versus 12k would be in charge as prices edge closer to $4,500.
All charts courtesy of Trading View—BitFinex
This is not investment advice. Do your own research.
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