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Although many investors and analysts were disappointed that Bitcoin and the global cryptocurrency market did not finish 2018 on a higher note, the markets could see an increasingly bullish sentiment from traders and investors, according to new data.
If the price of Bitcoin begins to rise as these data suggest, it is important that it decisively breaks its subsequent resistance levels, which according to the analyst currently exists around $ 5,000.
Confident feeling of Bitcoin growing
Joshua Frank, co-founder of the cryptanalysis analysis platform TheTIE.io, spoke with Forbes about the growing and bullish sentiment surrounding Bitcoin, referring to a sentiment score using social media data.
"We have seen that the daily sentiment peaked on 4 January, and while it has slightly declined, it remained positive, given the historical correlation between bitcoin sentiment and price, this would suggest further gains for cryptocurrency," Frank explained.
Frank's comments on opinion data are reflected by a widely used technical indicator that has recently become positive for the first time in months.
The Directional Movement Index (DMI), which measures the strength of the pressure to buy or sell a particular asset, has moved into the positive directional movement category for Bitcoin, signaling that it may be facing increasing buying pressure that could trigger an event in the near future. days or weeks.
Bitcoin captured in the wide commercial range
Although there are more signs indicating a rising bullish momentum than Bitcoin, one analyst states that he is likely to be captured in a broad trading range, with $ 5,000 remaining as a strong resistance level.
Mati Greenspan, senior market analyst at eToro, recently discussed this range, also pointing out that the price level of $ 4000 that Bitcoin is currently defending is not psychologically important.
"Even if $ 4000 is a nice round number, it does not necessarily represent any kind of significant psychological level." If we reduce the zoom, and as we have been discussing for a few weeks, we can see that the total range we are in is $ 3,000 to $ 5,000 per coin … So now we are halfway in the middle of the broader range, "he said.
Jon Pearlstone, the editor of the CryptoPatterns newsletter, has a slightly different view of where the key levels of resistance are, claiming that Bitcoin must overcome its 2018 trendline which exists at $ 4,500 to be able to test the next level of key resistance at $ 6,000.
"Any force on a trendline test would likely lead to a new key resistance test at $ 6000, a level that is maintained for months," Pearlstone said.
Since Bitcoin has risen above $ 4000 a couple of days ago, it seems to have treated this price as a relative level of support, but it must achieve greater purchasing pressure in order to increase its next key resistance levels.
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