Bitcoin (BTC) spent most of Monday see-sawing between gains and losses as the digital currency finds resistance at around the $11k mark. However, strong gains made early on Tuesday saw the Daddy of Cryptocurrencies rise 5% to $11,338.00.
Having broken the key $11k barrier on Friday, Bitcoin (BTC) found some solid resistance around the $11,000 price. Whilst nearly all cryptos ended Monday in the negative, Bitcoin (BTC) was prominent for being in the green amongst a sea of red. Much has been speculated upon as to why the bull run in Bitcoin is gathering so much much momentum and so fast. So far this year, the largest of all the cryptocurrencies, has risen more than 180%. And it is not the only one to have surged this year. Litecoin (LTC) has recorded an incredible 356% return since the beginning of the year.
When markets are as bullish as this, you can throw away the trading guide. The rallies seen in digital currencies are very reminiscent of the gold rush days at the back end of 2017. The conditions are fueling a FOMO (fear of missing out) amongst traders which is blowing away the charts. However, on closer analysis, we may well be due a correction soon
There are two areas of concern. First, a bearish hammer is beginning to show signs of forming beyond the upper Keltner band to warn of price exhaustion. Secondly, a bearish divergence is forming on the RSI.
Whilst many cryptocurrencies were experiencing some mild correction on Monday, Bitcoin (BTC) continues to be the traders darling at the moment. It looks as though we are due a correction, but the volatility and unpredictability are testing traders mettle.
It is safe to say that the crypto winter is finally over. Spring is in the air in the crypto world and Bitcoin is booming and blooming.
