Originally reported by-Cryptocurrency News 24/7 | Cryptonews.tel


  • Bitcoin's short-term technical charts indicate scope for a check of the 200-day common at $9,100.
  • A breakout on an extended period chart has opened the doors for an increase to $10,000 and above.
  • An impending long-term bearish crossover on the three-day chart is a lagging indicator and is of little concern.
  • The short-term bullish case would weaken if prices print a UTC shut under $9,200.

Bitcoin is best bid at press time and could keep its current upward trajectory despite a long-term bearish indicator making its first look in 19 months.

The highest cryptocurrency rose to a two-month high of $eight,580 during Tuesday's Asian buying and selling hours and is presently buying and selling at $8,480 indicating a Four.eight % rise on a 24-hour basis, based on CoinDesk's Bitcoin Price Index.

Bitcoin is now up by greater than 30 % from the low of $6,425 reached in December 2019.

While the cryptocurrency is displaying signs of life following the gloomy second half of 2019, a widely-tracked technical indicator is about to flash a bearish sign.

The 50-candle average on the three-day chart is trending south and appears set to cross under the 100-candle common within the next few days. That might be the first bearish crossover of the two averages since June 2018.

Nevertheless, shifting averages are based mostly on historic knowledge and tend to lag costs. To put it another method, crossovers are the results of the worth action that has already happened and have limited predictive powers.

While bitcoin did drop in the days main up to and after the confirmation of the identical bear cross in June 2018, the broader market circumstances have been bearish on the time, as seen under.

3-day chart

The 50- and 100-candle MAs produced a bear cross within the three days to June 21, 2018 (above left). Prices had fallen from $7,800 to $6,300 in the first two weeks of June and dropped additional to lows under $5,800 by the top of the month.

A subsequent rise ended up creating a bearish lower high at $eight,500 and costs remained under the 50-candle MA until April 2019.

It's value noting that bitcoin had rallied by greater than 1,300 % in 2017 before falling by 50 % within the first quarter of 2018. Primarily, the market had a tough touchdown after the staggering annual achieve, and the bear cross probably gave merchants a purpose to unwind their lengthy positions.

Brighter image

This time, nevertheless, the state of affairs could be very totally different. Bitcoin has lately broken out of a six-month falling channel, signaling a resumption of the rally from lows near $4,100 seen in April 2019 and opening doorways for a re-test of October highs above $10,000.

Further, the breakout comes 4 months ahead of the mining reward halving – a course of that reduces the availability of bitcoin. Alex Benfield, knowledge analyst at Digital Belongings Knowledge, advised CoinDesk the occasion might bode nicely for costs.

Traditionally, bitcoin tends to hit a brand new market cycle prime (the very best point from the previous bear market low) within the calendar yr of a halving, however before the event, according to in style analyst Rekt Capital. 

So, the cryptocurrency might rise above the 2019 high of $13,880 ahead of the Might 2020 halving.

All in all, the approaching three-day chart bearish crossover should not be a cause for worry for the bulls.

Four-hour and every day charts

The high-volume bounce from the ascending trendline on the 4-hour chart (above left) indicates the rally from the Jan. Three low of $6,853 has resumed. Prices might problem the 200-day common resistance at $9,097 (above proper) within the subsequent few days.

The day by day chart (above right) also signifies the path of least resistance is to the upper aspect. As an example, the current inverse head-and-shoulders breakout and the next rise to two-month highs is telling a tale of a successful transition from a bearish-to-bullish setup.

The instant bullish case would weaken if prices close (UTC) under $eight,200 immediately. That degree acted as robust resistance multiple occasions over the weekend.

A UTC close under the higher low of $7,667 created on June 10 is required to verify a short-term bearish reversal.

Disclosure: The writer does not hold any cryptocurrencies.

Disclosure Learn Extra

The chief in blockchain information, CoinDesk is a media outlet that strives for the very best journalistic standards and abides by a strict set of editorial policies. CoinDesk is an unbiased operating subsidiary of Digital Foreign money Group, which invests in cryptocurrencies and blockchain startups.

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