After a significant 2-day 10% rally towards $9,630, Bitcoin has been under healthy consolidation for the past two days. The bulls are looking at the daily 12-EMA for support but Bitcoin is still almost $200 away from the level. The increasing bull volume followed by a decrease in volume during the consolidation indicates the bulls are likely going to see a continuation in the next 24-48 hours.
If they are able to break the last $9,630 lower high of the daily equilibrium pattern, we are going to see Bitcoin attempting to break $10,000 again. A break of the equilibrium pattern will most likely be strong enough to get Bitcoin above $10,000 and possibly touch $11,000.
BTCUSD Chart By TradingViewThe weekly chart is clearly in a bull flag and the bulls are also waiting for the trigger here. The EMAs have crossed bullishly and the MACD has remained bullish as well. The $10,000 level is a clear resistance level that is holding Bitcoin back.
Bullish Sentiment On The Rise
According to analyst Mati Greenspan, Bitcoin will reach $10,000 before June.
10k b4 June!!— Mati Greenspan (tweets are not trading advice) (@MatiGreenspan) May 28, 2020
Greenspan didn’t really state anything else besides his forecast. Some of the retorts pointed out to the expiration of CME futures on Sunday. According to a recent study performed on CME futures and whether or not they have any effect on Bitcoin, the average 24-hour return post-expiration is positive for the digital coin.
This would translate into Bitcoin going up on Sunday/Monday which is basically before June. If Bitcoin can see enough strength on Sunday and break the last lower high, we will likely see $10,000 before Monday.
Bitcoin longs continue to dominate across exchanges as well. BitMEX has currently around $233 million in public long positions and only $51 million in shorts. On Bitfinex, longs are dominating shorts at a 5:1 rate as well. There is a clear interest in buying Bitcoin and not a lot in shorting. Even after Bitcoin saw a huge 10% crash on May 10, the number of shorts barely increased.
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DISCLAIMER Read MoreThe views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.