Bitcoin Rallies 85 Percent To Erase Losses
Bitcoin (BTC, for short) has already created a bullish setup with its move upward of over $13,000.
During the Asian trading hours, the cryptocurrency hit $13,154 – the highest seen since June 27. This increase has allowed the BTC to recover 85 percent of its sell-off that was seen in the seven days after (from $13,880 to $9,164) until July 2.
CoinMarketCap noted a rise in the prices means the dominance rate hit 65 percent for a 27-month high. It appears the rally is going to stay constant, and the cryptocurrency is on the path of challenging the June 26 high.
What Do The 15-Minute and Hourly Charts Reveal?
A couple of days ago, Bitcoin rallied to $12,873 (2.4 percent) in the 60-minute chart, which confirms there’s an upswing in the triangle and the bullish pattern is likely to continue. A move above this $12,883 means the BTC has set itself up for a fresh, even higher high.
In essence, the least resistant path of the high side means the prices are cemented into a bullish breakout that includes a successful defense for previous $12,883 support.
For the 15-minute chart, there is bull flag breakout – a pattern that denotes a rapidly preceding trend. This breakout has allowed for the $13,868 rally. The increase in this dollar amount may not be seen in the U.S. market should the cryptocurrency market weaken, and it drops to under $12,538.
What Are Daily and Weekly Charts Showing?
The June 28 high was invalidated when the Bitcoin closed at more than $12,061. And, both the five-day and 10-day moving average are rising, which means another bullish setup is taking place.
According to the 14-day relative strength index (RSI), there are bullish conditions about, with the Chaikin money flow indicator staying in the positive region. Thus, it can withstand buying pressures.
What does it all mean?
The BTC is moving at a pace that is likely to test and break the $13,880 record that was set on June 26.
The 14-week RSI is holding steady at the December 2017 level, which means there was an overabundance of BTC buying in the last 19 months. This shouldn’t, however, be concerning for bulls. With the BTC able to quickly recover from the sub-$10,000 level, the bearish market was invalidated.
Basically, even if the market is overbought, it can stay that way so long as the sellers stay in the black. And, all indicators point to an overbought pattern for the long-term thanks to the strong cryptocurrency market.