Bitcoinrally currently capped but higher prices cannot be discounted.
Supportive technical should fuel the next move higher.
IG Client Sentiment Datashow how retail are positioned in a variety of cryptocurrencies.See how daily and weekly positioning can affect our trading bias.Bitcoin(BTC)trade data shows79.9% of traders are net-long, a strong contrarian bearish signal. However, recent daily and weekly changes in sentiment suggest astronger bearishtrading bias.
BITCOIN (BTC) BULLS TRAPPED IN A SHORT-TERM HOLDING PATTERN
The largest cryptocurrency by market capitalization ($141.5 billion –55.3%)trades just under $8,000 after having rallied more than 150% since the turn of the year. The longer-term bulls move was confirmed on April 2 when the cash price pierced the 200-day moving average and was strengthened when both the 20- and 50-day moving averages rose above the longer-term ma on April 12 and April 24. Higher volumes since the start of April aided the move higher.
Bitcoin now looks likely to make a fresh attempt at a new 13-month high ($9,080) and is building support around, and just above, $7,450 ahead of the next move. This support needs to hold on the daily chart. The CCI indicator shows Bitcoin bouncing off oversold territory suggesting that bullish momentum is holding.
To the upside, the first level of resistance is at $8,140, followed by old lower highs either side of $8,500 before the 13-month high at $9,080 comes into view. A break and sustained close above here suggests a new attempt at $10,000 before $11,600 to $11,970 come into play in the longer-term.