Bitcoin is currently trading at $9,381 after a bear break of the 4-hour equilibrium pattern. It seems that the spark for this break was a transaction from a wallet from 2009. Someone moved 50 Bitcoins that were mined in the first month of Bitcoin’s existence. 40 of those Bitcoins were actually moved to Coinbase.
Wild theories started to surface, some of them implying that Satoshi Nakamoto, the creator of Bitcoin, was moving his coins around. The more likely explanation, however, is that an old miner is moving some of his coins around, perhaps he forgot about them. It’s also possible that someone brute-forced his way into that wallet, something extremely unlikely but not impossible.
Even if this was Satoshi Nakamoto, he would certainly not crash Bitcoin.
Daily Uptrend Still Intact
Bitcoin is still in a daily uptrend although it’s looking to set a daily equilibrium as well. The last low is set at $9,150 which means that anything above this level maintains the daily uptrend. The recent high of the equilibrium pattern is $9,950, a level that bulls have not been able to really break above for the past 2 weeks.
There is a ton of resistance around $9,900-10,100 and after 3 clear rejections, bulls are starting to lose some fuel.
However, bears also seem to be weak, usually, after so many rejections, bears can see a lot of continuation to the downside but not in this case. It’s clear that there is a lot of uncertainty among traders right now.
Trading volume continues dropping which indicates the break of the daily equilibrium pattern is bound to happen in the next week or so.
Long-Term Still Looking Good
Similarly, the long-term of Bitcoin is still in good shape with the weekly chart close to an uptrend. The MACD continues to be bullish and EMAs are still well below the current price.
The bulls really need to break $10,000. This crucial level will determine the direction of Bitcoin for basically the rest of the year. If BTC can’t break $10K, we will probably look at $8,000-7,000 for support. It would still not be game over for bulls but it’s definitely not something they want to see.
Will Bitcoin break above $10,000 this week or will the bears finally take over?
