Bitcoin Overbought Sentiment Paves Way For Fresh Long Build-Ups – FxWirePro’s Long Hedge Serving Purposes

Of late, the bitcoin price has been gaining its buying momentum but from the last couple of days ( a week or so) has slid a bit. 

BTCUSD (at Coinbase) has dropped from yesterday’s highs of $9,194.99 levels to the current $8,665 levels.

However, the uptrend still appears to be intact, one can observe last week the bitcoin price (BTCUSD) has constantly risen against the major fiat pairs upon the constructive fundamental driving forces coupled with the lingering safe haven sentiments in geopolitical turmoil. BTCUSD has reclaimed $9k mark (+6.31% on WoW basis), BTCEUR has also edged higher towards 8,200 level (+6.80% on WoW basis), while BTCGBP spiked above 7k levels (+6.87% on WoW basis).

Technically, BTCUSD has formed hanging man and spinning top patterns to signal overbought sentiments. Consequently, prices are plummeted below 7DMAs, currently trading $8,665 level. 

Short-Term Analysis: Range resistance breakout upon engulfing patterns, Bulls take-off well above 7, 21 & 100-DMAs with bullish crossovers, both leading & lagging oscillators in line with uptrend but expect minor dips on mild overbought sentiments. 

Medium-Term Analysis: Shooting star plummets prices below EMAs & retraces more than 78.6% Fibonacci levels. While hammers & dragonfly doji attempt to counter these slumps as both leading oscillators show oversold pressures & gaining strength in bullish trend.

While bulls break-out triangle resistance, the major trend spikes above 21 & 100-EMAs as the interim rallies intensify. For now, the interim upswings likely to extend on bullish DMA crossovers amid mild price dips.

Trade Tips: We had foreseen these indications upfront a fortnight ago and advocated long hedges & trading strategies accordingly, now they must have not only arrested upside risks but also derived leveraged yields on trading grounds.

For now, the bearish engulfing pattern pops-up upon overbought pressures signalled by the momentum oscillators. At this juncture, this would be perceived as a better entry levels provided by the bears for fresh traders.