Bitcoin Wakes up From Sleep, Gains Over 20 Percent in Two Days

Bitcoin Wakes up From Sleep, Gains Over 20 Percent in Two Days

Kiran Shroff  | Apr 04, 2019 01:34

In the cryptocurrency space, Bitcoin just got a wake-up call and showed a significant gain of almost 20 percent in only two days' time. Commodities, on the other hand, have had a good quarter in Q1 2019 with Bloomberg Commodity Index rising from 160.30 points at the beginning of 2019 to 169.82 points by the end of March, giving a positive return of 8.4 percent.

Those who study inter-market relationships to predict market movement can always look at historical price charts to see the level of correlation between commodity and stock markets. This may not be possible with the cryptocurrency market as it is relatively new and does not have enough historical data to draw any correlation or conclusion.

We look at the medium term charts of Bitcoin, Brent Crude Nymex and Gold futures and how they have behaved in the recent past and are likely to behave in the near future.

Bitcoin (BTC.CPT) Close: 4957.52, April 02, 2019
Bitcoin_20190402_medium term

The cryptocurrency benchmark Bitcoin gave a surprise two days ago by gaining over 13 percent on Monday and 6 percent on Tuesday. It broke above its downtrend channel in the medium term. In the first place, a breakout from the falling trend channel indicates either a slower rate of fall or possible development of a sideways trend. It has now risen above its resistance of 4200 dollars. In the short term chart, it has sharply broken above the rising trend channel on high volume. There is now support at 4200 and resistance at 6600. Hence reward to risk ratio is favorable.

Positive volume balance, with high volume on days with rising prices and low volume on days with falling prices, strengthens the cryptocurrency. RSI above 70 shows that there is strong positive momentum in the short term. Investors have steadily paid more to buy the crypto, which indicates increasing optimism and that the price may continue to rise. Positive volume balance and strong momentum make Bitcoin a weak buy instead of a watch in Investtech's short and medium-term charts.

Investtech's outlook (one to six months): Positive

Analysis for Brent Crude Nymex and Gold futures can be read under the 'original post' link.

Analyses are based on closing price as per April 02, 2019

Original Post

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.

Kiran Shroff

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes