Bitcoin Price is up 8.6 percent at the time of press and firm above $4,000
- Unverified sources indicate that Japan FSA gauging interest in Bitcoin ETF
- Trade volumes light and BTC/USD ranging in lower time frames
Overly, the crypto sphere is vibrant. Lifting enthusiasm is bulls’ resilience and ability to maintain prices above $4,000 even with light volumes. Everything else constant, Bitcoin prices would rally towards $6,000 once there is a comprehensive break above $4,500.
Bitcoin Price Analysis
It’s back to green, and at the time of press, the world’s most valuable currency is up 1.2 percent and 8.6 percent against the greenback in the last day and week. Of course, perma bears might argue that this is, but we should also realize that with every higher high, the foundation of the next wave of bulls continues to take shape. No doubt, any recovery above $4,500 is b, but before there are sharp gains propelling prices towards $6,000, we should note that it is essential for bulls to maintain prices above $4,000—a psychological mark.
After days of analysts as well as price commentators haranguing of potential volatility as BitFinex and ETHFinex switch their servers from Amazon Web Servers, it seems like Tron and altcoins benefited from expected price movements. Gains were not overt, but it looks like Bitcoin was a periphery beneficiary, closing on a high rejecting lower lows in the process.
Perhaps BTC prices edged higher after news filtered that the Japanese Financial Service Agency (FSA) had plans of approving Bitcoin ETF ahead of the US SEC—assuming the later go on and accept any of the nine Bitcoin ETF proposals and especially that of VanEck and SolidX. By considering Bitcoin ETF, the regulator bins any idea of approving Bitcoin Futures. Insiders claim that the FSA is gauging investor interest on the product.
BTC price is firm above $4,100, our previous buy trigger line. If bulls maintain prices above $4,000, then it is likely that we may see a rally above $4,500 towards $6,000. That will bode will with previous BTC/USD trade plan. Before then conservative traders should take a neutral approach, recommending trading only when there are substantial gains backed by above average volumes as reiterated before.
In the meantime, aggressive traders should search for loading opportunities in lower time frames. Alternatively, they can buy at spot prices with stops at $4,000 or Jan 7 lows. By buying at prevailing rates, traders would be aligning with the short-term trend set by mid-Dec 2018—early Jan bulls confirmed by Jan 6 bulls.
Transaction volumes are low and reflecting lack of participation in the last two days ranging markets. A stand out in the last two months is Nov 20 bar—volumes exceed averages (117k versus 37k). Ideally, any break above $4,500 should be at the back of high volumes exceeding 120k.
All Charts Courtesy of Trading View–BitFinex
Disclaimer: Opinions are those of the author. Do your Research.