Over the weekend bitcoin traded above $7k boosting the rare odds that a double bottom bullish reversal is in play, indicated by technical charts.
The bears where all on the wrong side of the market as an important psychological support of $6.5k held on strong despite a bear flag that saw the cryptocurrency slide downwards.
Light volume trading on Sunday saw the cryptocurrency move slightly above $7,000 and as of writing the currency is fluctuating between $6700 and $7100. Present price indicates about 9.8 percent rise from last week’s low of $6,513 according to bitstamp exchange platform.
The recent rise has been associated with the rumor that Wall Street’s big wales are bracing up to drive into the crypto asset. The man noted for breaking the bank of England in 1992 “George Soros” is one of those big wales from Wall Street rumored to be interested in cryptocurrencies.
News in media houses claims Soros has given his macro investment manager Adam Fisher the go-ahead to deal on cryptocurrencies.
Other bigwigs said to be interested in cryptocurrency trading is Venrock which is the venture capital arm of the John D. Rockefeller financial arm. They are set to begin trading on bitcoin.
However, despite the positives for bitcoin the technical charts show that the battle for a bull run has only just begun.
Although the immediate bearish outlook might have been neutralized by the light Bull Run from $6,500 to $7,186, time will tell if this can be sustained.
The descending trendline in charts needs to be cleared before bitcoin bulls can be assured that the present bearish run has at least flattened out. The first real hurdle will be to clear out the $7,300 immediate resistance and the double bottom neckline $7,510 which was formed on April 3rd.
To confirm the double bottom bullish reversal, bitcoin needs to close out above $7,510 and pave the way for a stronger rally to $8,500.
Both moving averages, 5 and 10 days are biased to the bulls. The falling trendline has also been cleared by the RSI(Relative Strength Index).
Although the immediate bearish outlook might have been neutralized by the light Bull Run from $6,500 to $7,186, time will tell if this can be sustained.
The descending trendline in charts needs to be cleared before bitcoin bulls can be assured that the present bearish run has at least flattened out. The first real hurdle will be to clear out the $7,300 immediate resistance and the double bottom neckline $7,510 which was formed on April 3rd.
To confirm the double bottom bullish reversal, bitcoin needs to close out above $7,510 and pave the way for a stronger rally to $8,500.
Both moving averages, 5 and 10 days are biased to the bulls. The falling trendline has also been cleared by the RSI(Relative Strength Index).