Today Bitcoin has set a new annual high, taking the mark of $ 7,500. Over the past couple of days the bulls were at the peak of their efforts, they finally managed to break the key resistance level at $ 7,000. However, after such a rapid Pampa was a rollback, and at the moment, the Bitcoin fell back to $ 6989.
Now it is necessary to change their view of the market. If the earlier decline could be taken as an opportunity to bargain short, and now lowering prices to better use to increase their long positions. Well-known economist Alex Krueger advised to adhere to exactly such a strategy.
On the way to the moon
Note that a drop to $ 7,000 in the second half of the day is seen as a symptom of a completely organic growth of the asset. 48 hours before he entered the overbought condition, so the bulls had to “reset” the readings on technical indicators for the formation of a new wave of growth.
Kruger noted that Bitcoin has already moved to the global uptrend. We will remind, earlier similar point of view was voiced by chief analyst Fundstrat Tom Lee.
BTC is now in bullish territory after breaking out of the local resistance. Global resistance will be the line $ 8,000. Above 6400 dollars obstacles can only be considered round numbers. On BitMEX 1-hour trading volume reached its highest since 5 September 2018.
$BTC now in bull market territory after an intraday blow-off top.
R: 7000, 8000
S: 6400, 6000
Old levels are not as valuable, hence why above 6400 only looking at round numbers as major resistance.
Hourly volume at Bitmex was the 2nd largest ever after Sep/5/18. pic.twitter.com/ANmIIDJVf1
— Alex Krüger (@krugermacro) May 11, 2019
Bitcoin pretty quickly crossed the line of $ 7000. She has yet to “prove” their own “strength” — if this point happens a few bounces, so we have a new global level of support.
Analyst under the name Cred was supported by Kruger and stated that now is the best time to buy Bitcoin.
I use high time frame levels to form a bias.
$6000 floor was a major resistance level. It got blasted. When major resistance fails, the market is bullish.
Once the bullish bias is set, I look for intraday buy setups:
I) Pullback to support
II) Run on lows
— Cred (@CryptoCred) May 11, 2019
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