BTC is driven by a lot of hype coming from the retail as well as the institutional segment. Institutions have all the information and the money to drive prices. Retail traders are the sacrificial lambs.
Weekly channel pattern: A technical perspective on BTCUSD
BTCUSD is currently trading around $9,500. It is finding support from the 50-period Exponential Moving Average. However, the traded volume seems to be on the lower side.
A look at the weekly timeframe for BTC reveals the long-term triangle cluster. This cluster can be traced back to 2017 levels. The price action can be anticipated to an extent, from this pattern.
By the end of this week, we will see the confirmation move by BTC. If it moves higher from here, and the support holds steady, BTC will be headed to forming a new high for 2020.
Bitcoin’s confirmation move will be crucial for determining price action
In case, BTC moves lower, the support zone by the EMA line will weaken. And if the support breaks, BTC will come down drastically. And going by the current signals, a downward movement seems more plausible than an upswing.
BTC will only become bullish if it is headed higher towards the pattern and that too with good volumes. Since BTC is moving a lot currently because of the retail investors, the volatility is bound to reduce with time.
Moreover, on the higher side, the $10,000 will be a psychological barrier as well. And fear can grip the market more quickly than optimism.
We often hear analysts and novice bloggers talking about the rise of BTC towards $15,000 by the end of the month. These are mere speculations, and people fall into this trap easily.