Looking at the 4 hour-view we can see that BTC bounced on the $6000 limit in February before going up again. It went up, broke $11000 and went back in a downtrend until April 12th. The sudden drop could be explained by 'the recovery sell'. The market underwent a quick rise, what leads to a massive amount of sell orders that are filled because of panic and fear of a downtrend, which leads to a drop. Multiple reasons can explain the sudden rise in price. One of them might be that exchanges are liquidating shorts by buying btc. By this they also push up the volume by resparking intrest in the crypto markets, so they can bank lots of fees. Another reason can be that whales are buying in before the ETF's. Winter period is also known as a more bearish period for both normal stocks and crypto and during spring the market revitalizes and starts booming again.
Technical analysis (by www.newsbtc.com )
Bitcoin Price Key Highlights
- Bitcoin price appears to have broken past a complex inverse head and shoulders pattern.
- This adds to the recent bullish signals being seen on the short-term time frames.
- Price has also broken past the descending trend line and moving averages, which appear to be making a bullish crossover.
Bitcoin price is showing one short-term bullish signal after another, and this momentum could continue to build up as it breaks more upside barriers.
Technical Indicators Signals
The 100 SMA is still below the longer-term 200 SMA on the 1-hour time frame to signal that the path of least resistance is to the downside. However, the gap has narrowed significantly to signal a potential upward crossover and a reversal.
Note that bitcoin price has previously broken past a descending trend line and the moving averages’ dynamic inflection points. It has also moved past the neckline of an inverse head and shoulders formation, which is a classic reversal pattern.
The chart pattern spans $7200 to $9200, which suggests that the resulting uptrend could be of the same height. However, stochastic is heading south from overbought levels so bitcoin price might follow suit. RSI is also turning down from the overbought region to indicate a return in selling pressure.
Is this the right time to buy a Gunbot?
Yes, it is. 2 reasons why:
The price of a Gunbot stays the same but is paid in Bitcoin, Ethereum or Litecoin. This means that the amount of Bitcoin for a Gunbot stays the same but that it will be more expensive in USD/EUR value because the crypto's will be worth more.
Trading in a rising market
With Gunbot it is possible to trade in a market that is in a downtrend, however the profits are not as big as in the market we will soon have. A rising market will enable Gunbot users to use other strategies, that are more suited for a bullish market. For example tssl (trading stop / stop limit) this enables you to Set a range for trailing lower buy prices and getting even better sell prices without risking much potential profit.
This means that instead of clearing trades with 1-2% profit, Gunbot will enable the traders to profit from bigger rises, do more trades and sell automatically in case of a sudden drop. We highly recommend backtesting (https://www.cryptodailytrading.com/gunbot/backtesting) in a rising market with different strategies even if you don't have a Gunbot (yet). You can always purchase your Gunbot license @ https://www.cryptodailytrading.com/gunbot.