Tuesday’s Inferno market reportCrypto Inferno
Bitcoin started the week in a fairly lacklustre way, with no big moves up or down. For a while there it looked like it would cross back over the 50 weekly moving average, but gently dropped away from a local high just under $7,800 as midnight approached. Resistance is confirmed around those levels, meaning a rise to $8,000 is needed for any kind of bullish confidence to return.
On the downside, there’s a similarly clear floor. Last Tuesday the price fell about as far as it could safely go, bouncing off the long-term trendline at $7,000 – any lower would have provided a ‘panic’ signal to traders. (Right now it doesn’t look like 6 June is going to be another bottom, unless something goes very wrong in the next few hours – see http://telegra.ph/Sixth-Sense-05-30)
As it was, that rising support line remains intact. It climbs at a rate of around $250 per week. By the end of this year, assuming no other changes, we might be pushing $9,000.
But, of course, bitcoin doesn’t do slow-and-steady very well. It’s an all or nothing kind of currency. And time is running out for a decision on which way to go next.
The support line is rising at the rate of $250 a week and currently sits a little above $7,000. Resistance holds around $7,800. In a maximum of three weeks the market will have to choose which way to go. The picture might look boring right now, but behind the scenes something significant is building.
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