Bitcoin is up more than 40% in just 10 days.
Reaching strong resistance around 9,000-9,200 USD.
CoT-report is neutral.
Sentiment is getting overly optimistic again.
Over the last 10 days, Bitcoin (BTC-USD) and the whole crypto sector strongly bounced from oversold levels and posted a significant recovery. Some of the altcoins more than doubled already. Before that, a two-week long base building pattern coupled with extreme negative sentiment divorced the last weak hands from their cryptos.
Especially an extremely bearish call by “Bank of America” demonstrated how beaten down sentiment was in the second week of April. Usually once a big bank makes such a strong statement in the public or mainstream media, it is prudent to do the opposite as it shows how one-sided public perception actually has become. True contrarians simply love this headline and front page indicator.
Thus by now, anybody who was willing to buy into that weakness has made pretty good returns already for which other asset-classes often need years. Today Bitcoin is back to well-known resistance around 9,000 USD and is clearly getting overbought in the short term. A pullback towards 8,000 USD, at least, would be just logical.
Bitcoin Technical Analysis
Fortunately, last Friday, Bitcoin (BTC-USD) was able to break out of its downtrend channel on its logarithmic chart! Of course, that is a positive development and improves the big picture. But while reaching the zone around 9,000–9,200 USD, bears will come back into the game. In fact, last Saturday morning they were already able to push prices down 450 USD within just a few hours. Surely, professional money has been taking profits around 9,000 USD which was visible by a few large blocks that changed hands and an increased trading volume around this psychological number.
Read more at: Seeking Alpha
