Bitcoin is bullish, period. If you survived the drama of the last 48 hours, or if you took advantage of the situation and bought the dip, congratulations! In the last two days, your investment re-valuated more than 1000$. In case you just hodled your tokens, congratulations too! You just protected your money and survived the “crash”.
After a strong rally experienced at the beginning of April, the price of Bitcoin maintained an uptrend that led many to think the bearish season was over.
However, every strong trend carries a risk of a natural correction, and that moment seemed to come on May 16, 2019, when abruptly and seemingly unexplained, Bitcoin dropped from 8000 to 6900 in two days.
Bearish comments soon appeared, and many went to Crypto Twitter to use this sharp drop as an argument to question those who claimed the market is close to experiencing a bull run.
Bitcoin Didn’t Crash… It Was Just a Sell Wall
In the absence of a logical explanation from the point of view of technical analysis, a tweet by Dovey Wan seems to have found the reason for this recent downturn. An anonymous trader placed a huge position in Bitstamp, creating a sell Wall of almost 5000 BTC at a price close to 6600 USD.
The manipulation seems to have been successful in an immediate term (a trader who focuses on markets of few hours) however after two red days, a big Green candle marked the beginning of this beautiful Sunday, demonstrating that as fast as the price went down, the market pushed up.
Charts Show The Panic is Over
Analyzing BTC’s behavior in charts set at 1 hour, it is possible to note how the 7000 zone became an important support, and for a short time, after reaching the minimum, the market struggled to overcome the resistance close to 7400 USD (with a minor support at 7200), however after overcoming this obstacle, the new support reached 7800 with the market seeking to overcome the resistance of 8000 USD.
The outlook is even more optimistic on the 4-hour chart. An RSI close to 60 and a bullish MACD give confidence that the market will not only recover but that better days are coming.
However, some indicators suggest trading with caution. There is no miraculous indicator, so it is always important to investigate before investing and to never fix more money than you can lose.
Good luck and happy hodling!