Bitcoin is currently testing resistance at the 5300 level with heavy demand pressure as we start off the week. Are we ready for the next leg up?
- Order books are overly long for a 10% upward move
- Price action has been continually rising for the past 4 days and is now testing previous highs from the last explosive rally
On the weekly timeframe, price action is starting to setup very nicely and presents a possible incoming golden cross, combined with stochastics extending out of the over sold range.
A 10% move upwards requires only approximately a third of selling orders at time of writing.
Crypto markets held onto recent gains over the weekend as Bitcoin edged higher on Sunday over the 5200 level to test the previous highs from Tuesday of last week.
With the transactions level staying high, and market cap heading up towards $200bln markets have been green across the board with Ethereum Classic taking the lead up 16%.
Transactions per second have also remained high over the weekend
If funds continue to flow in when European markets open, we could see a continued upside to the trend as the higher timeframes turn more bullish.
Another move up to the previous support would see many traders who have held positions from last year come back into profit, and possibly further move sentiment to aid more bullish moves.