Bitcoin has held on to gains over the weekend ranging in the mid-$9k price zone. The longer it remains here the more bullish sentiment becomes and a trading signal has just flashed long for the first time since April last year.
Bitcoin Closes on Five Figures
BTC has held above $9k for the entire weekend with a push up to $9,600 a couple of hours ago. The move marked its highest price for three months according to Tradingview.com.
A golden cross has formed on the daily time frame indicating a long term trend reversal. The 50 day moving average has now crossed above the slower 200 day moving average. The last time this occurred was in April 2019 and a 200% rally followed.
A similar rally from today’s levels could put the price of bitcoin at $28,000 by halving time, which is just three months away now.
Analyst and trader Josh Rager has observed another technical indicator which has also just flashed long for the first time in almost a year. The Blackroots Alpha Trend has now gone green again, Rager is a co-founder of the crypto exchange.
“The last two times “long” signaled:
– Sept ’16 prior to the Bitcoin ATH
– March 26, days before the $1000 candle and run to $13ks”
https://twitter.com/Josh_Rager/status/1224015231090864129
When asked about Open Interest on BitMEX Rager added;
“I’m not too worried about it, I think we will see pullback, that’s a given so it just depends on leverage, smart trading such as 2x to 3x won’t get anyone liquidated but many of these people are shooting for the moon,”
OI has now hit $1 billion on BitMEX which usually results in a correction. Traders appear to be starting to exercise caution now and taking some profit off the table.
So far unable to break 9,400-9,450 but still fighting it after some fuckery earlier this morning to retest Jan 20 high (9,150).
With Bitmex OI approaching 1B and Weekly close in a few hours, I'm reducing my altcoins exposure and will reconsider tomorrow. https://t.co/pB5mdac9gx pic.twitter.com/oWZvVSBYwx
— Pierre (@pierre_crypt0) February 2, 2020
Elsewhere on Crypto Markets
Total market capitalization is currently just over $260 billion which is the highest it has been for over four months. Bitcoin dominance has dropped a little to 66.5% which is good news for the altcoins.
Ethereum has had a big weekend with a push to $190 and a 5% gain over the past 24 hours. Being so far down from its all-time highs, ETH prices are more attractive at the moment so it is likely to see bigger gains in the coming months.
Ripple’s XRP has also made a rare move to $0.25 while EOS and Ethereum Classic have both gained 5% on the day. Tezos is one of the top performers at the moment with a 12% pump to reach $1.90.
Will bitcoin continue to rally into February? Add your thoughts below.