August 10, 2020
Bitcoin had an impressive weekend of trading. The weekend trading was not as dynamic as the previous one but it was incredible in the sense that Bitcoin continued gains over the underlying support at 11,500 USD as the bulls battled to bring down the barrier at 12,000 USD.
In the interim, BTC/USD is wavering at 11,756 USD in the midst of a step by step building trend towards 12,000 USD. The bullish case to levels over 12,000 USD is supported by a number of technical indicators including the RSI, the MACD, and the moving averages.
The Relative Strength Index (RSI) is holding firmly at the level of 70 after a consistent ascent from lows of 30 (seen in March mainly due to the crash brought on by the Coronavirus outbreak across the world). The rebound following the crash stayed consistent however it took a break in May with the RSI slowing under 60 mark. A small reversal also occurred but the RSI grasped support over the midline at 50 as Bitcoin’s price held in consolidation for a number of weeks in the range of 9,000 USD and 9,300 USD.
BTC/USD weekly chart.
Chart created using https://www.tradingview.com/
The breakout in the middle of July saw BTC lift over 10,000 USD mark. This left the bulls committed and they were relentless to a degree in testing the resistance at 12,145 USD. With the RSI at 70 currently, Bitcoin is by all accounts supporting the bullish case to 14,000 USD.
The MACD is additionally supporting the bulls push with its level in the positive range. A distinctively noticeable divergence from the MACD (304) which puts emphasis on the impact the bulls have over the price. Also, the gap formed by the 50 SMA over the 100 SMA in the weekly range clearly shows that the route of least resistance is upwards.
Fundamental Analyst for Global Markets
James has over 20 years of experience trading FX, cryptocurrencies and investments products for a range of investment banks and brokers
He spent the last 10 years analyzing and writing about foreign exchange, crypto-currencies and the global financial markets
He has also spoken at a range of conferences around the globe on various financial topics.