China? A Market Manipulator? No Way…
Bitcoin popped over the weekend after China’s President Xi Jinping gave his endorsement to cryptocurrency. The endorsement, no doubt, is meant to establish China as a cryptocurrency-powerhouse and propel a China-backed coin into the spotlight. Whatever the reason, Bitcoin and the pantheon of cryptocurrencies bot a major boost from the news. As part of China’s endorsement, the country is actively working to remove all articles, websites and news that portrays cryptocurrency in a bad light. This may not be an intentional manipulation on the part of China but let me remind you, China’s ban of cryptocurrency is what caused the 2018 bear market.
Bitcoin is up more than 25% in three days following the Xi Jinping endorsement. This is not so much of a big thing by itself, Bitcoin makes giant moves all the time, but it confirms support at key levels. Not only has support been confirmed at the $8,000 level, Bitcoin moved above the down-sloping resistance line and broken out of a previous consolidation. The move is supported by the indicators, MACD and stochastic are both bullish. MACD is on the rise and convergent with the new high, that is the MACD peak is setting a new high at the same time. Stochastic is interesting in that it is, overall, bullish and yet %K is still pointing lower. This suggests now would be an opportune to buy short-term, speculative positions, simple projections put BTC at $11,200 in a matter of day.
Other coins are likewise showing bullish activity. Ethereum, despite its long-running problem with upgrading (it can’t quite seem to do it), is also pointing to reversal. The coin is forming a nice double-bottom at a key support level and likely to begin drifting higher soon. The first targets for resistance are $200 and $220, once those are broken a move up to $240 and $280 is possible.
Litecoin, Bitcoin’s liter faster lesser-used cousin, is also indicating a reversal. Litecoin has confirmed divergence in the indicators by rising up from a new long-term low and moving above the short-term moving average. Litecoin may not be in a full reversal but the downtrend has ended. The indicators are bullish too, MACD is on the rise and stochastic is set to fire another buy, so $70 and $80 LTC likely to happen soon.
The long-term outlook for all the cryptocurrency market remains bullish. Not only is the usage and support of cryptocurrency growing, the Bitcoin halvening is about to cause a major rally. It’s still quite a few months until the halvening, could it be Xi Jinping and his buddies in China are counting on the rally? It seems awfully opportunistic for China to all of a sudden get bullish on crypto. This may just be my conspiracy-seeking mind at play, but what if it’s not? This could be the start of the next big rally, we may have just seen the bottom in BTC.