Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

Bitcoin Looks Ready for Another Bullish Push

If you have followed Bitcoins price action, you probably got a whiplash. The daily chart (of BTC from the BITSTAMP exchange) shows the cryptocurrency surge at the end of 2013 from the tune of 100 to a record high 1163. Price has since settled back to the middle of this dramatic range, around 600. 

BTC/USD Daily Chart 7/8

However, as you look at the daily chart, you can see a bullish trend developing since April's low around 340. Price has crossed above the 200-, 100-, and 50-day moving averages. The moving averages themselves are reflective of a directionless market, but you know they lag price action. Price action shows a break above a falling trendline, and development of a rising trendline. Also the daily RSI has tagged above 80 and held above 40. This shows development of bullish momentum. With the RSI pushing above 60, we are seeing bullish continuation momentum in the daily chart.

The 4H chart also shows a bullish development. The RSI here has the same dynamic as the daily chart, pushing to overbought levels and then staying above 40. 

BTCUSD 4H Chart 7/8

Price has consolidated a bit in June, but popped up above June's trendline at the end of the month. In July so far, we are seeing a falling wedge consolidation as the market digests the bullish breakout. Price action signals a bullish bias along with bullish momentum, so look for a bullish BTC trend in July.