21 January 2020 - BTC/ USD – Hourly

22m
cryptodaily

Tone Vays Says Bitcoin (BTC) Is Already 'Faster and Cheaper' Than Bitcoin Cash (BCH). Here's Why

1h
utoday

Bitfinex Launches Sub-Account Feature Amid Growing Institutional Demand in Crypto

1h
coingape

Bitcoin [BTC] Price Breaks Support from Bear Pattern, but Holds Bulls above $8500

2h
coingape

Binance CEO responds to Chainalysis report; says data should be publicly available

2h
bitcoinwarrior

Indian Minister Believes Blockchain Can Transform Government Schools

2h
bitcoinnews

How to get Free XTZ From the Tezos Foundation Faucet

2h
cryptoglobe

Bitcoin (BTC) Price Could Tank to $8,000. Can Things Get Worse for Bulls?

2h
utoday

Ripple (XRP) Just Reversed and $0.25 Is Imminent, Here’s Why

2h
cryptonewmedia

Bitcoin Price Won’t Go Down Quietly: Risk of Bounce Grows

3h
newsbtc

Another Bitcoin Hashrate All-time High has Been Recorded

3h
nulltx

New Taxation Proposal can Boost Cryptocurrency Merchant Adoption » The Merkle Hash

4h
cryptonewmedia

Cryptocurrency Needs Fair Taxation: US Lawmakers Introduce Supportive Legislation

4h
beincrypto

Are We At “Peak-Unicorn” Yet?

4h
bitcoinwarrior

‘Blockchain, not Crypto’ – Samson Mow explains why Bitcoin Lightning and Liquid are Unique

4h
coingape

Is This Why Bitcoin SV Climbed Another 20% In the Last 24 Hours?

5h
cryptonewmedia

UK Contract Seeks Software to Track Cryptocurrency Use

6h
dcebrief

There Are Still Grounds For impeachment Even Without ANY Crime

6h
bitcoinwarrior

CME's Futures Options Sprinted Out of the Gate but a Marathon Lies Ahead

6h
cointelegraph

Bitcoin Just Closed Beneath This Key Level and It Isn’t Good for...

7h
newsbtc

Britain’s Tax Agency Offering Contract for Tech to Combat Crypto Tax Evasion

7h
cointelegraph

Cardano (ADA), Tezos (XTZ), EOS May Pump like Small Cap Altcoins: Analyst

7h
coingape

Bitmain Advised to Rescind U.S. IPO Plans Due to Association with BitClub Ponzi Scheme

8h
beincrypto

Steps For A Regular Person Who Wants To Become A Millionaire

8h
bitcoinwarrior

Sally Ho's Technical Analysis 21 January 2020 LTC BCH

8h
cryptodaily


Why The Recent Bitcoin Pump Could Be A Major Bull Trap

Bitcoin has made another aggressive pump to the upside but this was not a surprising move. We discussed this just yesterday in our analysis in two different ways. First, we talked about the probability of a retest of the 1.272 fib retracement level. After that, we talked about how the price has yet to break a key trend line support on the 1H chart for BTC/USD. Until and unless that was broken, we had no reason to be bearish. As we saw soon afterwards, that trend line held and the price ended up shooting much higher. That being said, there is no reason to be overly bullish just yet because BTC/USD remains within the rising wedge it has been trading in.

The rising wedge that we see on the BTC/USD chart has a very high probability of breaking to the downside. The recent move seems to be a ploy to get more bulls excited and have them trapped before the next crash. We have seen on charts like ETH/USD that the price has now shot up past the 61.8% fib extension level around $143.75 on the daily time frame. This is not surprising at all considering it has happened before and a lot of traders have their stops around key levels like these. Once those stops were hit, the price pumped through it and shot up higher. However, the reason this is not bullish to me, at least not yet is because we have yet to see follow through.

Pumps like these happened in the past and in the case of Ethereum (ETH) we have even seen multiple daily candles close above both the 38.2% and the 200-day moving average before it turned out to be a fake move and the price crashed hard afterwards. We have seen resistance trend lines being invalidated in the past and this time might be no different. This is why it is very important to wait for follow through and confirmation of a trend. The EUR/USD forex pair continues to have a bearish outlook. We can spot a potential head and shoulders on the daily chart for the pair which is a red flag and warns us that further downside might be about to come in the cryptocurrency market.

Bitcoin dominance (BTC.D) has just tested the key 200-day moving average. We have been waiting for this retest since April, 2019. This now means that Bitcoin dominance (BTC.D) is in the clear to shoot up. We know from Bitcoin’s trading history that this happens for one of two reasons. Either the price of Bitcoin shoots up while the rest of the market lags behind or the entire market crashes with Bitcoin holding its ground better compared to other cryptocurrencies. At this point, it seems like the latter might be happening which is another sign to remain extremely cautious and not to be carried away by the short-term bullishness in the market.

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