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Blocksmith Says: Bitcoin’s Setting Up for an Advance

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Looking at the bitcoin chart basis daily data, price is still churning around in the 80-day cycle trough zone and therefore setting up for an advance. As a matter of fact, so is Nasdaq and so is gold.

Bearish sentiment is at an extreme and despite pretty horrific overall news flow, markets look to be over-positioned to the downside and over pessimistic, which is an environment for a bounce. However, if the anticipated bounce in Bitcoin materialises it should be considered countertrend. The reason for this is that the longer 20-week cycle is rolling over and will act as a headwind. Above us is the falling 200-day exponential moving average and a solid block of potential resistance that starts around US$27,200.