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Bitcoin (BTC) Technical Analysis – Three Times Is Indeed A Charm – Countertrend Rally Underway

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After two (2) prior unsuccessful attempts at completing inverse Head-and-Shoulders (H&S) formations which prevented Bitcoin (BTC) from breaking out of its long downward malaise over the past six months, BTC was finally able to go top-side of its recent neckline (6900 level), with conviction, in yesterday’s trade and in the process, completing its most recent H&S pattern as well as kicking-off the counter-trend rally that we had been anticipating as well as preparing our readers, for such a potential turn of events.

While six-times a charm was the ticket for Vinny (Joe Pesci), the character in the Film  “My Cousin Vinny”, three-times a charm it was for Bitcoin.

In addition to the successful completion of the inverted H&S pattern and perhaps more importantly, we are now experiencing the large counter-trend rally that we have noted/referenced in several (HERE and HERE)) of our recent writings when we stated, “While the daily time-frames continue to portray potential for lower levels, not everything is bleak. When zooming-out to both the Weekly and perhaps more specifically, the Monthly time-frame/s, we’re nearing an important inflection point from which we suspect that the bleed lower subsides/pauses and in turn, results in a massive counter-trend rally that may begin as early as the next 2-3 weeks. Nonetheless, we’ll cross that bridge when we arrive and in the meantime, continue to keep readers of Global Coin Report apprised of the technical landscape and what may be in store ahead. 6/27/18″

Now that we’re off and running and the party has commenced, let’s take a look at the Charts to see what may be in store as we move forward.

As we can observe from the Daily chart above, we can see that BTC has gone top-side of the neckline (white horizontal line) located at the 6900 level, a level that we have attempted to direct readers attention to for some time as being a potentially critical inflection point.

In addition, we can also see that BTC not only cleared the 6900 level but did so with ease and conviction. Furthermore, BTC now finds itself trading above both its 20 (yellow line) as well as its 50 (blue line) day moving averages, which portrays a favorable technical posture from both a short and intermediate-term duration. Although BTC remains well below its 200 SMA (red line) on the daily time-frame and requires further work, such business is for another day.

Nevertheless, both the short and intermediate-term time-frames are both constructive and encouraging from a technical standpoint.

Moving out to the Weekly time-frame below, we can witness that BTC is presently trading beneath both its 4WK (yellow line) as well as its 10WK (blue line) moving averages, yet appears set to test its 4WK moving average in the not too distant future. Whether it is able to clear and recapture the hurdle, requires further monitoring.

Needless to say, the recent action of BTC, as well as the entire cryptocurrency space, has been a welcome relief and while we’re not certain as to whether the recent lows (5700) prove to be “A Bottom” or “The Bottom” is rather premature to declare just yet.

With that in mind, both investors/traders may want to utilize the following levels as a guide as well as evidence/clues with respect to direction moving forward.

Based purely on the inverted H&S pattern, the measured move for BTC suggests a price objective in the 7800-8000 zone. While the move can certainly overshoot or come-up a tad light, we’ll have to await further cards from the deck to be revealed.

Nonetheless, if, at any time in the days ahead, BTC can clear the large volume red bar high of 6/10/18 located at the 7500 figure, such accomplishment, should it materialize, would likely trigger the next move into higher ground into the noted 7800-8000 zone. On the flip-side of the coin, previous resistance at the 6800-6900 zone should now provide for durable support.

While both investors/traders patience and perseverance have certainly been put through the test throughout this long arduous bear market of the past 6-7 months, embrace the present rally as it’s been well overdue and deserving for those who have endured.

Happy Trading~

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pexels

Charts courtesy of tradingview.com

Bitcoin

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

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Bitcoin

Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

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Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

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Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

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Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

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