Bitcoin has seen some scary bearishness the past few days which has made the bears very confident. Many of them have entered aggressive short positions in anticipation of a major crash. While I do believe that we will see that crash, I don’t think it is going to happen when everyone is expecting it. Most such moves catch the average trader off-guard. This was true of the rally from $7.7k as well as the recent crash.
Now that BTC/USD is knocking at the key resistance of $9k having already broken the trend line support, we expect further bullishness near-term. However, Bitcoin is now inching closer to the next big crash. The S&P 500 (SPX) is primed for a decline and we might be days away from the beginning of a sharp move to the downside. The ongoing Bitcoin move could extend towards $10k under the extreme bullish scenario but anything past that would be extremely improbable.
The EUR/USD forex pair is also at a critical juncture now awaiting a key breakout. We might see the pair break out of the symmetrical triangle by June. As for Bitcoin, if this breakout is to the downside, we can expect a major crash. Meanwhile, Bitcoin dominance (BTC.D) continues to hold strong and is now eyeing further upside. All things considered; the cryptocurrency market is very close to the next major downtrend which may turn out to be more aggressive than the previous one.