Bitcoin (BTC) Jumps to Multi-Month High, Supportive Trend Back in Place
Bitcoin (BTC) Price, News and Analysis:
- Charts suggest that Bitcoin’s rally may not be finished
- Overbought reading may slow further short-term progress.
Bitcoin (BTC) Jumps $1,000 – Low to High – in Eight Hours
Bitcoin volatility is back with the cryptocurrency rallying hard overnight and hitting highs last seen in mid-March. Today’s daily candle has now broken back above a trendline started off the March 13 low and if BTC can remain above here, the rally may look to test the February 13 high at $10,506.The cryptocurrency market as a sector has registered strong gains across the board, suggesting that positive sentiment is building in the asset class as a whole and not just BTC. If this backdrop remains, then further gains in the short- to medium-term are increasingly likely.
Two weeks ago I noted that Bitcoin was preparing for a breakout ‘as support continues to push higher and begins to close in on resistance’ and that a recently formed ‘Golden Cross’ boosted positive sentiment. The report also highlighted the strength of the supportive uptrend and this remains in place.
Looking forward, the February high is the next upside target, followed by the September 5 2019 lower high at $10,940. While the chart remains positive, the CCI indicator shows that Bitcoin is in overbought territory and this reading may need to normalize before further gains are seen. Initial support from today’s low and trend between $9,750 and $9,810. If Bitcoin closes and opens below trend, then positive sentiment will be pared back leaving a cluster of recent lows down to $9,335 exposed.
Bitcoin (BTC) Daily Price Chart (October 2019 – June 2, 2020)
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