BTCCNY recently broke past a short-term descending channel resistance, signaling that bullish pressure is kicking back in. Price could make its way up to the next ceiling around 7500 from here or onto the highs around 8500.
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside, which means that the uptrend is more likely to continue than to reverse. Price also recently bounced off a long-term rising trend line connecting the lows on the daily time frame since August last year. It is also moving back above the 100 SMA dynamic support.
Note that the gap between the moving averages is getting wider, which means that bullish pressure is getting stronger. Also, the 200 SMA is close to the long-term trend line, acting as the line in the sand for any major correction.
Stochastic is on the move up so BTCCNY could follow suit and push for more gains. RSI is also turning higher to indicate that buyers are regaining control of price action. Both oscillators have room to go before reaching overbought levels so buying momentum could be in play for some time.
Bitcoin enjoyed a new round of buying pressure after reports indicated that bitcoin developers have reached a grand consensus on the scalability issue. Recall that investors had been spooked about the hard fork as they worried that Bitcoin Unlimited or a new version of the software could render old bitcoin invalid. Exchanges had previously issued warnings about potential incompatibilities that might arise so traders liquidated their holdings.
However, a number of other exchanges have recently stated that they would not support Bitcoin Unlimited, restoring confidence that bitcoin holdings would not lose their value. The recent agreement by bitcoin developers further boosts the cryptocurrency as they plan on merging Bitcoin Unlimited and Bitcoin Core within two weeks to engineer maxblocksize increase to 4MB which will then further increase by 25% yearly until 32MB, together with modified segwit to remove the fee discount for signature data.
“After two years of lengthy debate where all minute details have been discussed at great length, we believe that a slightly more than two months lead time is more than sufficient for the network nodes to upgrade.
This announcement is expected to reach all cryptomedia as well as mainstream media. It is doubtful anyone sufficiently involved in this space would not be aware of this historic event. In any case, once a significant portion of nodes upgrade, node operators automatically receive a warning. There is no reasonable argument to provide any further time for this historical moment with freedom day the chosen date.”
This is set to take place on July 4, 2017 and all nodes are expected to have upgraded by that point.