Bitcoin [BTC] has held its gains above $8700 for the second consecutive day. It reached it’s twelve months high on 27th May 2019. This will likely make the traders looking for a pullback anxious as Bitcoin [BTC] could gain another leg up soon. However, with the extreme parabolic rise, withdrawal is just as likely.
On the 4-Hour chart, Bitcoin broke above the ascending triangle, which is bullish. Moreover, the MACD is also 34.86 with slight divergence, suggesting an upside. However, the RSI (Relative Strength Index) is in the over-bought region just above 70, which is bearish.
On the daily chart, the parabolic rise is suggesting a pullback as the MACD has converged and RSI is in the over-bought region as well. The price is trading above the moving averages, which is, however, bullish. The target for the ascending triangle around $9700.
On a weekly scale, the MACD is bullish as it is looking to diverge towards the bull. However, the RSI has grown increasingly bearish in the over-bought region above 80.
The price is trading above the 50, 100 and 200-Day Moving Average on all three charts with significant bullish divergence.
On the fundamental front, the volume has been healthy with the confidence in the uncorrelated asset growing with the belief in FIAT currencies shaking over the world with the US-China trade war and hyperinflation in Latin countries.
Do you think more bullish action will continue in bitcoin [BTC] or we’ll see the much-awaited pullback? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com