- Bitcoin (BTC) prices firm, add 9.5 percent in the last week
- Despite fraud accusations, BitFinex will crowd-fund to raise $1 billion
BitFinex, sources have it, will proceed with their IEO and the aim is to raise $1 billion in USDT. While it is pleasing for investors, the exchange is reserving $600 million for whales. Even so, its success would mean pressure on Bitcoin (BTC) which is up 9.5 percent in the last week.
Bitcoin Price Analysis
Bitcoin (BTC) price performance is impressive. Rallying, against all the odds, the coin is up 9.5 percent from last week’s close adding 2.4 percent in 24 hours. Even so, analysts believe that prices are topping. Indeed, the zone between $5,800 and $6,000 house significant resistance levels that buyers must overcome for a trend continuation.
If anything, that’s our iteration, and despite many traders loading up thanks to improving fundamental factors and general improvement in sentiment, it is only until after our trade conditions are correct that we shall recommend buying on dips with first targets at $6,000 and later $8,500.
Presently, the focus is on BitFinex and their brave plans of raising $1 billion through an initial coin offering (IEO). The composition of a team determines how successful it is and as we now know, Tether Limited reserves can’t cover the amount of USDT in circulation. Besides, BitFinex has in more than one occasion accused of malpractices and is a victim of a hack.
Even so, assuming it is a success, we expect investors to liquidate their BTC holdings for USDT heaping pressure on Bitcoin which is already reacting after peaking on Apr-3. From sources, of the $1 billion, 60 percent is allocated for “private investors,” that is, whales and VCs.
As it is, the pressure is on, and analysts’ opinions seem to be false. Investors are in and ramping up in lower time frames. We need not look far. From candlestick arrangement, not only are prices trading above $5,600 but the underlying momentum is high.
Notice that Bitcoin (BTC) prices are banding along the upper BB in a breakout trade complementing buyers of Apr-2. At the same time, there has been a complete reversal of Apr-25 losses meaning the bull breakout of early Apr-2 indeed valid.
However, from candlestick arrangement, risk-averse traders should take a neutral stand until after prices rally above $6,000. Once that prints out then they can buy on dips with targets at $8,500 more so if the accompanying breakout is with high transaction levels.
Our anchor bar was Apr-25, a bear bar with above average volumes marking a double bar bear reversal pattern of $5,600. With May-3 signaling buyers as it is wide-ranging, we expect volumes to pick up in days ahead if indeed buyers are in control. Ideal volumes should exceed 10k as prices rally away from $5,600.
Charts courtesy of Trading View
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Post written by our friend Dalmas Ngetich
Syndicated from NewsBTC.com