First Since 2017: Bitcoin Worth Logs Double-Digit Positive factors for Third Week
- Bitcoin has recorded double-digit positive factors for 3 consecutive weeks, a feat final seen in the course of the top of the bull market in 2017.
- BTC’s fast restoration from Friday’s low of $6,178 signifies “purchase the dip” mentality is kind of robust. Additional, the each day and weekly charts are biased bullish. Costs, subsequently, might rise to $8,500 (July 2018) this week.
- Earlier than such an increase, nonetheless, we might even see a correction to $7,500–$7,200, in keeping with the hourly chart.
- The short-term outlook would flip bearish provided that costs discover acceptance under the 30-day transferring common, at the moment at $6,239.
Bitcoin (BTC) is wanting robust, having registered double digit positive factors for 3 consecutive weeks.
The main cryptocurrency by market worth closed final week with 17.5 % positive factors, having rallied 22.16 % and 10.62 % within the previous two weeks, respectively, in keeping with Bitstamp knowledge.
The final time BTC witnessed an identical bullish run was within the remaining quarter of 2017, when the cryptocurrency had logged in double digit positive factors for 5 weeks straight to hit an all-time excessive of round $20,000 on Dec. 17.
The newest weekly successful streak could possibly be prolonged additional, as BTC’s fast restoration from Friday’s lows under $6,100 to a excessive of $8,299 on Sunday signifies a robust “purchase the dip” mentality.
As of writing, BTC is altering palms at $7,903, representing a 1.36 % drop on the day.
Different high cryptocurrencies like ether (ETH), litecoin (LTC), binance coin (BNB) and XRP are additionally reporting average losses, in keeping with CoinMarketCap.
As might be seen, BTC has logged its first three week run of double digit positive factors since December 2017.
Notably, costs bounced up sharply from the 5-week transferring common (MA) final week and closed on a optimistic notice, reinforcing the bullish view put ahead by that ascending common.
There have additionally been two bullish crossovers within the final week: one of many 5- and 100-week MAs, and one other of the 10- and 50-week MAs, suggesting the trail of least resistance is to the upper aspect.
What’s extra, BTC closed properly above September 2018 excessive of $7,411 final week. The cryptocurrency, subsequently, seems on monitor to check the subsequent resistance at $8,500 (July 2018 excessive).
Every day chart
Bitcoin closed with almost 13 % positive factors on Sunday, marking a robust follow-through to the dip demand highlighted by Friday’s long-tailed each day candle.
The short-term outlook, subsequently, stays bullish with scope for a rally to $8,500, as recommended by the weekly chart.
Confirming the bullish case is the optimistic studying on the Chaikin cash move (CMF) index, indicating rising shopping for strain. Additional, the 10-day transferring common (MA) can be trending north in favor of the bulls.
The outlook as per the each day chart would flip bearish provided that and when the worth finds acceptance under the 30-day MA, at the moment at $6,239. That common resistance was breached with a high-volume rally upside transfer on Feb. Eight and has reversed pullbacks ever since.
Whereas the weekly and each day charts are biased bullish, the quick period view under signifies a pullback to $7,500 could also be so as earlier than a rally to $8,500.
On the hourly chart, BTC is at the moment buying and selling above the head-and-shoulders neckline of $7,848, having dived out of a rising wedge – a bearish reversal sample – within the Asian buying and selling hours.
A head-and-shoulders breakdown can be confirmed if costs drop under $7,848, opening doorways for a deeper correction to the $7,500–$7,200 help zone.
That mentioned, with the longer period charts biased bullish, any dips to $7,500 or under will seemingly be short-lived.
Disclosure: The writer holds no cryptocurrency property on the time of writing.