Bitcoin fell to start the week as this weekend's selloff bled into Monday's trading session, resulting in a weak recovery and bearish close around the $56K level. This is a bearish candle, however, Bitcoin found support at the 50 Day EMA around $52K which has been a reliable support level and buying indicator during 20-30% corrections.
(April 19, 2021 8:30PM EST)
Short-Term:
Another selloff caused by 150x leveraged liquidations, this time on BINANCE futures, another thinly-traded weekend liquidity event. Cascading stop losses being triggered accelerated a rapid 20% selloff that was also quickly bought up. BTFD continues to be the modus operandi, especially close to the 50 Day EMA which we strongly bounced off of over the weekend.
This is at least our third 20%+ Bitcoin correction in this bull market, so what happens from here should be no surprise if you've been here for more than a couple months. As long as BTC stays above the 50 Day EMA, currently around $52K, then we should continue to see a grind higher at least. If BTC breaks back above $60 and holds, then we should see a rally to $65K again and then $70K.
Bitcoin's RSI fell sharply to 47 with the bloody close but this should not be confused with a sell signal. Rather, this should be viewed as excellent opportunity to buy Bitcoin in an RSI buy-zone.
We're entering a bullish time of year according to Bitcoin's statistical seasonality which should take us higher through Q3. $70K is our near-term price target followed by $75K, $80K, $90K, and ultimately $100K, which will be the ultimate test we have all been dreaming of for years now. One thing to keep in perspective: Bitcoin is now closer to $100K than $0.
Once Bitcoin starts moving, which if history is any indication of what's to come over the next few months, Bitcoin could see a massive run up to $80K, $90K, or even $100K by the end of summer. We're coming out of a historically sideways period on the Bitcoin calendar, so as more money continues to pile into crypto, Bitcoin should be the primary benefactor, and crypto HODLers only make up a small percentage of the global population.
Support: Immediate tentative support at $55K, 50 Day EMA at $53K.
Resistance: $60K, $65K, $70K, then $10K intervals up to $100K.
