As the crypto markets head into the weekend trading session, Bitcoin has been able to maintain its upwards momentum, and has been able to continue its upwards ascent. Although BTC’s recent price action has been overwhelmingly positive as of late, it may still be caught in an accumulation phase.
Bitcoin’s next level of resistance that traders should watch for exists at roughly $5,300, as this is where Bitcoin was swiftly rejected earlier this week when BTC surged to this price level from lows of $4,000.
Josh Rager, a popular cryptocurrency analyst on Twitter, recently noted that in the previous bear market, Bitcoin formed an accumulation pattern between its 100-day moving average and its 200-day moving average, which may prove to be a similar trading range for BTC in the near-future.
Assuming that Bitcoin’s current accumulation range reflects that seen following the 2015 bear market, BTC won’t exit the range until mid-July, meaning that traders will have plenty of opportunities to add to their positions.
Bitcoin Stable Above $5,000, Continues to Climb
At the time of writing, Bitcoin is trading up over 2% at its current price of $5,120, up from its daily lows of just under $5,000. Today’s upwards climb was sparked when BTC briefly dipped below $5,000 earlier today, signaling that this level has become a region of support.“$BTC Accumulation W Chart. Previous bear market Bitcoin accumulated under the 100 MA & supported by the 200 MA. Similar accumulation could happen with 200 MA (wick below) with the next uptrend starting after breaking above 100 MA. One possible scenario to observe next few months,” he explained.//twitter.com/josh_rager/status/07708928?s=21
Accumulation Range May Persist Until Mid-July of 2019
Moreover, Rager also explained that there is a possibility that Bitcoin is currently mirroring the price action it witnessed in 2015 following the large bear market, which could mean that BTC will be caught in an accumulation zone until mid-July of this year.
“$BTC Accumulation Pattern. It took Bitcoin 216 days for accumulation from bottom to spring in 2015. If this were accumulation, this week’s $1000 candle would be the exact middle of 216 accumulation days and would end on July 19th, 2019,” he explained, further adding that comparison analyses are “pure speculation.”//twitter.com/josh_rager/status/07708928?s=21
As the weekend trading session continues, Bitcoin’s price action will continue to unfold, and will likely set the tone for how the markets will trend in the week to come.
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