Bitcoin (BTC) Price Outlook, Chart and Analysis:
- Bitcoin (BTC) sell-off after last week’s fresh one-year high.
- Weekly chart needs to close above $8,481.
IG Client Sentiment Datashows how retail are positioned in a variety of cryptocurrencies. See how daily and weekly positioning can affect our trading bias. Bitcoin (BTC) trade data shows 79.2% of traders are net-long, a strong contrarian bearish signal. However, recent daily and weekly changes in sentiment suggest a mixed trading bias.
Bitcoin (BTC) Sell-off After Heavy Gains
Volatility has returned to the crypto-currency space in the last six months with Bitcoin up nearly $6,000 since its mid-December nadir around $3,120. Trading ranges, and volume, have increased sharply over the last month, suggesting that active traders are back in the market. While bears control the market today, a medium- to longer-term bullish outlook remains in place, although further short-term losses cannot be discounted. While the series of lower highs was broken in early April, the break above the July 25 high print at $8,481 broke another old lower high, but further consolidation above this level is needed before fresh gains can be made.
Sharp rallies and subsequent sell-offs are common place in the crypto-space and a further sell-off to around $7,500 may stall further selling. A period of consolidation is required before any fresh upside momentum can take over. On the daily chart, Bitcoin is currently back below the 20-day moving average for the first time in a month and should be watched closely. The 50- and 200-day moving averages are supportive of further gains, while the CCI indicator is at its lowest level in a month.