The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Market data is provided by the HitBTC exchange.
After the recent rally in crypto markets, most analysts believe that the bear market is over. Barry Silbert, Digital Currency Group founder and CEO, opined that the crypto winter is over and the markets have entered a “crypto spring.” Silbert pointed out that institutional involvement has grown a lot since the 2017 bull phase, which is the cause of his bullish stance.
Contrary to this opinion, blockchain researcher Tone Vays said that he does not trust the current rally as it is not backed by considerable external money investing in crypto markets. According to him, the existing long-term investors have supported the rally from the lows and if their conviction waivers, the markets can plunge once again. Still, he advises people to hold “some bitcoin.”
We believe that the bear market is over and the markets will form a higher base during the next fall. However, we are against chasing prices higher. Instead, we believe that the markets will give enough opportunities to buy on dips. Hence, traders should be patient and buy when the risk to reward ratio is in their favor.
Let’s take a look at the charts and see if we find any buying opportunities at current levels.
Bitcoin (BTC) has broken out of the 20-day EMA after struggling to sustain above it for the past few days. This shows fresh demand at higher levels. If the price maintains above $8,120, the bulls will try to push it to $9,053.12. A breakout of this level will invalidate the head and shoulders (H&S) pattern, which is a positive sign. The next target to watch on the upside is $10,000.
On the other hand, if the BTC/USD pair fails to sustain above the 20-day EMA, the bears will try to sink it to the neckline of the…