Bitcoin continues to trade in a triangle pattern as seen in the daily chart.
In the daily chart, there are some bullish clues:
1) Price is trading above the 200- 100-, 50-day simple moving averages.
2) The RSI has pushed above 80, and has since held above 40, which reflects maintenance of the bullish momentum.
3) Price is holding above a rising trendline from April.
The 4H chart shows a directionless market in July, but there is some bullish bias here too:
1) price is holding above 610, which is the “central pivot” of the triangle. This suggests bulls are in charge even though the cryptocurrency is consolidating.
2) The RSI has tagged above 70. Then even though it has cracked 40, it has not tagged 30. This shows some bullish bias in momentum, although we have to acknowledge the loss of bullish momentum.
3) While price trades below between the moving averages, it is sideways. However, it if pops up above 630 for example then treats the cluster of moving averages as support, we should get ready for a bullish attempt to break above the triangle seen in the daily chart.
If price falls below 610, we are probably going to see further consolidation and a test of triangle support which could be in the 590-600 area. Otherwise, with price staying above 610 in July, there is bullish bias within consolidation.
To the upside, the first target will be the July high around 658. Being able to reach the July high suggests further upside especially if the market sees that the last week or two of consolidation become support. In this scenario, the upside above 660 will be the March 2014 high at 710. We should then look at a bullish outlook toward the 700-710 area if BTCUSD can push above 660.
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