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This Price Hurdle May Pave Way for Bitcoin’s Next Leg Up

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  • Bitcoin’s rally from April 2 lows below $4,200 has stalled near the three-day chart’s 100-candle moving average (MA), currently at $5,238.
  • A three-day close (UTC) above that MA level could invite buying pressure, leading to a sustained move higher toward $5,500 and more.
  • That bullish close, however, looks unlikely in the short-term, as the cryptocurrency has created a bearish candle on the daily chart, validating signs of bull exhaustion (doji candle) on the weekly chart.
  • A UTC close below $4,948 today would add credence to yesterday’s bearish candle, opening doors for a deeper pullback toward the 30-day moving average, currently at $4,550.

The stalled bitcoin (BTC) rally could again pick up the pace if a new resistance level above $5,200 is convincingly breached.

The market-leading cryptocurrency picked up a strong bid at lows below $4,200 on April 2 and jumped to 4.5-month highs above $5,300 on April 8, confirming a bullish reversal.

The rally, however, has stalled in the last few days, courtesy of overbought conditions and other factors, as discussed yesterday.

Notably, the three-day chart’s 100-candle moving average (MA), currently at $5,238, has been proving a tough nut to crack since April 2. As a result, that lesser-known average is now the level to beat for the bulls.

A convincing move above that MA resistance could bring in more buyers, reviving the prospects of the further rally.

As of writing, bitcoin is trading at $5,080 on Bitstamp, representing a 1.5 percent drop on a 24-hour basis.

3-day chart

The 100-candle moving average has recently been put to test for the first time since May 2018. Back then, the average was trending north, indicating a bullish setup and was located just above $8,400.

As of writing, it is sloping downwards, representing a bearish bias, and is seen at $5,238. That bearish signal, however, is of little concern to the bulls, as longer duration averages are lagging indicators.

That said, bitcoin has repeatedly failed to secure a three-day close above that average over the last 15 days. A break higher, therefore, may embolden the bulls and allow a sustained move higher toward $5,500.

That, however, looks unlikely in the short-run, as the repeated failure at the 100-candle MA is accompanied by early signs of bearish reversal on the shorter duration charts.

Daily chart

BTC created a bearish outside reversal candle Monday – a pattern that occurs when the day begins on an optimistic note, but ends with pessimism. The candlestick is widely considered a sign of potential trend reversal, especially when it appears after a notable rally, as is the case with BTC.

Traders, however, wait for confirmation in the form of strong follow-through, preferably a close below the candle’s low.

So, a UTC close below $4,948 (Monday’s low) would shift risk in favor of a deeper drop toward the ascending 30-day MA, currently at $4,550. It is worth noting that the 30-day MA served as strong support throughout last month.

A bearish close below $4,948 looks likely, as the 5- and 10-day MAs have produced a bearish crossover, validating the signs of buyer exhaustion seen on the weekly chart (last week’s candle was a doji).

That said, the longer duration outlook will remain bullish as long as prices are trading above $4,236.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments

 

source.nulltx

 

Bitcoin

More Bitcoin ATMs are being introduced by LibertyX as interest grows

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  • The company behind first launching Bitcoin ATMs in the United States, LibertyX to introduce more.
  • LibertyX have announced they will add another 90 ATMs to its network. 

LibertyX, the firm that launched the first Bitcoin (BTC) automated teller machine (ATM), in the United States, will be adding 90 new machines to its network.

The Boston-based firm will be partnering with independent ATM operator DesertATM, as part of the network expansion, as detailed within a report by global ATM market publication ATMmarketplace on July 18.

DesertATM will be uploading LibertyX on 90 of its Genmega ATMs to facilitate Bitcoin operations. In terms of the new Bitcoin ATM locations, these will be placed at; gas stations such as AMPM, ARCO & Chevron, as well as Family Dollar retail stores, as per the press release notes.

source:.fxstreet

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Bitcoin not yet banned in India, regulations around the corner

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  • The Minister of State to the Ministry of Finance told the upper house of the Indian Parliament, cryptos are not banned yet.
  • The Minister, Anurag Singh Thakur, also stressed the need of creating a solution that caters to global regulators.

As per Anurag Singh Thakur, the Minister of State to the Ministry of Finance, holding or trading cryptocurrencies is not banned in India. During an address to the upper house of the Indian Parliament, Thakur stated that the Reserve Bank of India and the Ministry of Finance have issued notices regarding the use of Bitcoin and other similar coins:

“Presently, there is no separate law for dealing with issues relating to cryptocurrencies. Hence, all concerned Departments and law enforcement agencies, such as RBI, Enforcement Directorate and Income Tax authorities, etc. take action as per the relevant existing laws.”

The Minister’s response followed a recent report regarding an alleged crypto blanket ban draft which stated that the government would sentence crypto traders with a ten-year imprisonment.

In a separate letter addressed to the Ministry of Corporate Affairs, Thakur stated that an interministerial committee needs to create a solution that caters to global regulators:

“It is difficult to state a specific timeline to come up with clear recommendations. The Inter-Ministerial Committee (IMC) under the Chairmanship of Secretary, Department of Economic Affairs is examining all issues, including the pros and cons of the introduction of an official digital currency in India. No decision on licensing and authorizing any entity or company to operate such schemes or deal with Bitcoins or any virtual currency has been made as yet.”

source:.fxstreet

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Bitcoin price prediction: BTC/USD faces two healthy resistance levels on path back to $11,000

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  • BTC/USD is currently trading around $10,545.
  • The two resistance levels are at $10,575 and $10,700.

BTC/USD had a bearish Friday where the price fell from $10,660 to $10,540. Bitcoin managed to have a bullish start to this Saturday and is currently trading for $10,545. The daily confluence detector shows two moderate-strong resistance levels at $10,575 and $10,700. On the downside, there are two support levels of note at $10,500 and $10,375.

BTC/USD daily confluence detector

fxsoriginal

The $10,575 resistance level has the 1-week Fibonacci 61.8% retracement level, while the $10,700 has the most substantial resistance level but no confluences has been detected. On the downside, the $10,500 support level has the 100-day simple moving average (SMA 100) and the 1-hour previous low. The $10,375 level possesses the 1-day Fibonacci 38.2% retracement level.

source:.fxstreet

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