BITCOIN HAS INSTITUTIONAL SUPPORT AT $3K - $6K IN MAY
Let's not forget the massive support we have in the $3K area.
On the week of September 11, 2017, BTC/USD saw its highest-volume bullish daily candle in history, opening at $3K and closing almost $1,500 higher. Without a doubt, there is massive interest in buying at this level - and very likely institutional.
All this to say, $3K support will not fall easily. In fact we've already seen early signs of buying, with a clean bullish weekly candle printing back in December, opening at the $3.2K level.
So where do we go from here? There's an important time component to keep in mind. Because BTC doesn't have the traditional "fundamentals" investors look for to make buying decisions, most will simply wait for a "bottom" to buy back. If $3K doesn't break for a long enough time, then that's a good enough bottom signal for much of the cash currently sitting on the sidelines.
A few more months of range trading is likely. Then, a break in either direction will give a strong signal to both retail and institutions to jump in to capitalize on the newly formed trend.
The most likely break is upwards. We may even see another candle with record-breaking volume to revitalize the market back up to $6K.
On the week of September 11, 2017, BTC/USD saw its highest-volume bullish daily candle in history, opening at $3K and closing almost $1,500 higher. Without a doubt, there is massive interest in buying at this level - and very likely institutional.
All this to say, $3K support will not fall easily. In fact we've already seen early signs of buying, with a clean bullish weekly candle printing back in December, opening at the $3.2K level.
So where do we go from here? There's an important time component to keep in mind. Because BTC doesn't have the traditional "fundamentals" investors look for to make buying decisions, most will simply wait for a "bottom" to buy back. If $3K doesn't break for a long enough time, then that's a good enough bottom signal for much of the cash currently sitting on the sidelines.
A few more months of range trading is likely. Then, a break in either direction will give a strong signal to both retail and institutions to jump in to capitalize on the newly formed trend.
The most likely break is upwards. We may even see another candle with record-breaking volume to revitalize the market back up to $6K.
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