Bitcoin’s market has seen $950 million liquidated by the German government in just a single day, which is their largest sell-off ever. But surprisingly enough, BTC has managed to hold its ground.
It didn’t tumble beneath $55,000, no. It has stayed way above $56,000. According to CoinShares’ latest report, BTC saw an inflow of $398 million last week.
At press time, it was worth $56,860, and every other cryptocurrency on the top ten has seen an increase in the past twenty-four hours.
The bulls remain resilient
Take a look at the BTC/USDt 1-hour chart below. The Ichimoku Cloud is showing mixed signals. The price is within the cloud, which means trend.
The cloud’s leading span A (green line) is above leading span B (red line), which is a typical bullish sign, but the current price within the cloud suggests that you should tread with caution.
Additionally, the conversion line (blue) is close to crossing below the baseline (red), which could trigger a bearish run if it happens.
The 50-period moving average is below the 200-period moving average, which is actually long-term bearish signal. However, the price is above the MA50, suggesting a short-term bullish sentiment.
The price is moving above the upper Bollinger band, so that means Bitcoin is overbought, but combined with the other indicators, it makes the bulls case stronger.
The 53.21 RSI aligns with the short-term bullish trend in the price action. The MACD line is above the signal line, so the bulls are still kicking. But the MACD values themselves are still negative, so the market has not fully shifted to a strong bullish momentum.
Given these indicators, Bitcoin will probably continue to test resistance levels around $57,000 and possibly move towards $58,000 if the bulls sustain their little run.
But traders are still cautious because long-term bearish indicators tell us that this uptrend might face some major resistance in the near term. And a reversal could happen if the price fails to break above key resistance levels.
Interestingly, CoinShares’ data shows that inflows to altcoins have surged, with investors choosing to broaden their horizons a little. Bitcoin only accounted for 90% of the total inflows.
Reporting by Jai Hamid