At the time of writing, the leading cryptocurrency has been trading at $3,937 with 24-hours loss of 0.18 percent. Meanwhile, Bitcoin has been managing the daily trading volume of $10.3 billion.
BTC price chart, Source: TradingView
Divergence in Market Structure
In tandem with Bitcoin, the market is sightly in red as Ethereum takes a drop of 1.49 percent in the past 24-hours at $136.49. Here, crypto trader Hsaka, notes that “Whenever the two ponzis begin to diverge in market structure, the market tends to follow ETH.”
For now, except for Cardano and Stellar, the top cryptos are in the red by 1 to 2 percent. Theta is the biggest gainer with 30 percent gains while Project Pai is down the most by 11 percent. The overall market cap is almost intact as it registers at $134 billion while BTC dominance is more than half of the total market at 51.6 percent.
Bitcoin is a Bull
Over the past week, Bitcoin has been trading around $3,900, trying to break the $4k mark. However, Bitcoin failed to touch this level and further reach the monthly high of $4,200 that was last hit in late February, very briefly.
After taking a dip yesterday, it is yet again on the rise but showing much strength. Crypto analyst the Cryptomist explains that Bitcoin is currently caught in a wedge and is likely to break below.
“$BTC This is what I am seeing right now… Rising wedge, and a bearish divergence on the 4hr… I do expect us to drop from this wedge… Remember to ladder in profits from your current alt positions.”
However, from here, according to trader and analyst with the pseudonym, ‘Filbfilb’, $5,000 by May, this year is a real possibility which will be a significant psychological resistance level. He says Bitcoin is a Bull and has been remaining above 0.5 Fibonacci level since mid-February.
Other bullish signs are shown by MACD cross that is trending above zero and the strong buying pressure shown by Chaikin Money Flow (CMF). The action in the market has been repeatedly indicating bullish signs but bullish has yet to make a move to $4,200.
However, he also points out that a break below $3,400, if the market does starts moving downwards would be bearish implying more lower lows.
Bitcoin’s Future is $130k by 202
“Cryptocurrency as an asset class is minuscule - a drop in the bucket. A $1T+ market cap would still be undervalued for crypto to have any meaningful impact as a store of value/currency. The end goal for Bitcoin as an investment is a binary outcome. It goes to 0 or you 10x your investment. There is no in-between. It's really that easy. If you don't believe me or don't get it, I don't have time to try to convince you, sorry.”