Kiran Shroff | May 14, 2019 00:22
What is driving the crypto giant crazy? It could be anything from US-China tussle to pure speculation, or simply buyers interest. No one can give a concrete fundamental reason behind this leap. This is where technical analysis makes itself extremely useful and handy. Just by looking at the charts early in April, one could have obtained certain hints that there is something cooking behind the scenes and awaiting our attention. And we at Investtech like morning birds gave our readers an early wake-up call. We had given a weak buy on April 3 at a price of 4957.52 dollars. What is in store ahead?
Bitcoin (BTC.CPT) Close: 7 112.33 (-140.23), May 13 (intraday), 2019
Looking at last Friday's closing price and the latest uploaded intraday charts on Investtech's website, it is clearly a buy signal in all time frames whether short, medium or long term as the price has broken out of its resistance area around 6500 dollars.
Investors have paid higher prices over time to buy in Bitcoin and the price has broken through the ceiling of a rising trend channel in the medium term. The cryptocurrency has support at 6500 and resistance at 8400. In the long term chart, the price has broken out of the long term falling trend channel and also gave a breakout from a double bottom formation. The longer-term RSI-90 is also above 70 which indicated underlying strength and shows rising momentum in the crypto.
Positive volume balance, with high volume on days of rising prices and low volume on days of falling prices, strengthens the price in the short term. The short term momentum of the stock is strongly positive, with RSI above 70. This indicates increasing optimism among investors and a further price increase for Bitcoin.
We upgrade our recommendation for Bitcoin as technically positive from weak positive.
The analyses are based on the closing price as per May 13, intraday, 2019
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Disclaimer: All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading.
Written By: Kiran Shroff
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