Bitcoin - Impressive Move Yesterday, Will We See a Continuation Today?

As a follow up from my earlier post on Bitcoin pricing (see previous post here), I feel compelled to provide an update with the latest BTC/USD daily chart:

The reason why I felt compelled was first, in my previous post, I wondered if we're heading back to $6,000 again. I think the market gave a strong response right after my post. More on that later.

Second is because I had a comment on my previous post. As there were a few camps projecting Bitcoin price to head towards $6,000, would this eventually become a self-fulfilling prophecy? This is actually an excellent comment, and something worth considering this age of digital trading today. I am personally not a firm believer of Technical Analysis leading to a self-fulfilling prophecy. Sure, it can happen. But it won't always be the case. This is a very liquid and fluid market, with all sorts of people participating. It is very hard to believe that everyone trading know the support and resistance lines of a counter, nor will everyone have the same support and resistance lines for that matter.

Going back to the chart, it's good to see there was a strong reaction on price back to the $8,000 level. My conservative self though feel we still have to be cautious here, on 3 points:

1. The price is now touching the downtrend line. It has not broken above it, so up-move does not mean anything yet from this perspective.
2. The price is also touching the $8,000 resistance line that I have drawn. Again, it has not broken above it yet, which would provide more significance to the current move.
3. Lastly, for those who have been following my previous posts, I am now including a 50-EMA line on my charts. And currently, the price is still below the 50-EMA line.

In other words, notwithstanding the very impressive green bar yesterday, the long term move is still up in the air. All we've done is stemmed a few days of lackluster trading. It will be interesting to see how price reacts from here. I'll check back on BTC/USD price again in a few days. In the meantime, have a great day ahead.

Risk Warning: All comments, charts and analysis on this post are purely my own and should in no way be treated as recommendations or advice, nor should they be construed as an endorsement or recommendation to buy, sell or hold. Please do not trade based solely on the information provided on this post. Furthermore, past performance does not guarantee future success. Always do your own due diligence and analysis when trading.

Chart courtesy of TradingView