Bitcoin Gets Its Mojo Back

As we have said, in previous articles, Bitcoin has been in a downtrend since December of last year – represented here, by the red trendline running between 1) and 2) on the chart above.

You can see from this, that on 6th March, Bitcoin hit the trendline, at 3) but was pushed back by the resistance of the supply and demand area, shown as the yellow line at $11,435. From there it fell back to retest the February lows, at 4) since when it has risen sharply. Firstly, in the explosive 10% move, on 12th of April – and since – as a steady climb up to 5) through the resistance points of the 21-day EMA ( exponential moving average) and the supply and demand level, shown as the yellow line, 5) at $8,407.

This is the first time, this year, that Bitcoin, has not only breached the trendline, but pushed through it, with increasing momentum.

The divergence indicator, at 6) coupled with the change in pulse direction – shown by the dark maroon lines, on the bottom chart – gave warning that something was about to happen.The divergence indicator then started to rise, and has kept rising to 7). This has been coupled with a steady, and pronounced rise in the pulse signal shown in green, at 8). These are all very positive indications that Bitcoin is on its way again.

We have shown on the chart, the various levels of supply and demand, which, we think, will be areas to watch, as Bitcoin regains momentum, and climbs upward again. The crypto has seen a lot of volatility, in its short life, and these levels indicate the probable turning points between the highs and lows for the coming months. These are not exact. They are merely a “heads up,” to show the regions of the chart to pay attention to.

We think that the next area to watch is that around the $11,435 line, again, shown in yellow. A quick look across the chart from 3) to the left, will show that resistance has been prominent at this level, on about a dozen previous occasions. This means that if the momentum is weak, the price is likely to bounce back from this level next time too – if the momentum is stronger it may well push through to the next point of resistance at around the $12,770 mark, again, shown as a yellow line.

Our belief that Bitcoin is a long-term gain, can only be helped now that the small investors’ favorite cryptocurrency is moving in a positive direction again. Whether this will encourage further buying by such investors remains to be seen – but for the moment, Bitcoin looks as though it may be in for a renaissance of sorts. Just watch for those levels…

Noble Gold specializes in IRAs and 401(k) rollovers through precious metals and cryptocurrencies investments.