Looking at the 2 hour chart, we notice Bitcoin trending cautiously up in an ascending triangle pattern. Volume (Bitstamp exchange) is falling suggesting consolidation, and price is squeezing between the 55 exponential moving average (EMA, pink) and the upper limit of the current trading zone of $9,400.
Price has held twice at this moving average, which itself is currently perfectly in sync with the local uptrend – a good place to try a small long with a tight stoploss.
We also note a positive RSI picture on the 2 hour, with uptrending lows and equal peaks forming after what looked like the start of a breakdown. Given Bitcoin’s
of late, there is no reason why this formation could not break out for a final stab at the momentous $10,000 point. A breakdown back to $8,800, however, is certainly possible and would be cause for acute attention.
Looking at Bitcoin in another light, on the 4 hour, we note the consistent respect of the borders of a parallel channel since early May. The middle line of this channel lies at $8,800, while the top intersects $10,000 neatly. The bottom of the channel intersects with about $8,200, and all of these price targets would match Bitcoin’s current trading range.
The tepid movement has given the leading crypto plenty of time to cool off its indicators, and RSI again has some runway to return to oversold conditions if it wants to.
Libra on the Brain
As mentioned above, Facebook’s non-public crypoasset Libra has been the focus of the industry in past days.
(source: The TIE)
Data from TheTIE show that from yesterday show that nearly 75% of tweets mentioning both Bitcoin and Libra have spoken positively of Bitcoin. The data also show a generally growing incidence of Bitcoin in tweets, and especially an increase occasioned by Facebook’s news.
(source: The TIE)
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