Is Bitcoin Mooning? Prices Rise Above 12K USD!
Bitcoins price has risen to over $12,000 for the first time in four weeks. It has also been continuously reporting gains for the last eight days.
At 06:45 UTC, Bitcoin, which is currently the top cryptocurrency by market value, was trading above 12,000 US dollars. It later hit a high of $12,298. According to Bitstamp data, Bitcoin has not risen to this level since July 10.
The cryptocurrency is currently trading at $12,185 (USD) on Bitstamp. This is a gain of 3.26 per cent on its daily opening price of $11,800.
In the last seven days, the crypto coin has scored a 2 to 7 per cent gain.
Should Bitcoin print a UTC close of more than USD 11,800 today, it will have successfully accomplished an eight-day winning streak, which will be the longest it has achieved since June. Is Bitcoin mooning?
In June, Bitcoin's prices rallied for eight days straight from the 26th to the 29th. Before that, Bitcoin had last experienced a similar eight-day streak in December 2017.
This month's winning run seems sustainable since an increase in Bitcoins dominance rate accompanies them. Dominance rate is a cryptocurrency's share of the entire cryptocurrency market. According to calculations by CoinMarketCap, Bitcoin's gauge currently stands at 68.5%, a level which the cryptocurrency has not achieved since April 2017.
What is more, the crypto coin has seemingly found acceptance above the resistance at $12000 as seen in technical charts.
Thus, with the path of least resistance to the higher side, Bitcoin is likely to continue rising until it reaches its next major hurdle at $13,200 in the coming days.
4 Hour Chart
Daily and Weekly Charts
At $12,000, this cryptocurrency is now trading above the upper edge of the falling channel. Should Bitcoin close above that level, it would be a confirmation of a breakout, and the rally may proceed.
Such a breakout looks highly possible seeing that the five to ten-day moving averages are on the rise, which is an indication of a bullish setup. The relative strength index for fourteen days also shows bullish conditions with a print of more than 50.
Additionally, the convergence-divergence histogram for moving averages has continuously produced higher highs above the zero line. This is an indication that the bullish momentum is gaining more and more strength.
Lastly, yesterday saw a tick in the buying volumes which violated the downward trend and validated the bullish move in prices.
So, it is highly likely that the July 10 high of $13,200 could come into play in the next couple of days.
In a nutshell
- Bitcoins rise in price to $12,000 is accompanied by an increase in trading volumes as well as bullish readings on the daily chart.
- It looks like Bitcoin will close above $12,000, confirming a breakout of a falling channel on today's chart and also extend gains to the July 10 high of $13,200 in the coming days.
- The four-hour chart is showing overboard conditions and a bearish indicator divergence. As such, prices might drop down to between $11600 - $11,800 and the bullish UTC close of over $12,000 may not happen until Wednesday.
- Although it does not look possible for now, a drop of Bitcoins price to below the average support, which is currently at $10,545 would weaken the bullish cause.
About the author:
Jay Jackson is a blockchain enthusiast and a freelance writer at topcryptowriter.com. He works closely with brands (people, businesses and startups) in the crypto sphere. He currently writes Blog posts, Guides, Press releases, ICO reviews, eBooks & Whitepapers. You can find him on LinkedIn.
Disclaimer: The above references an opinion and is for informational purposes only. Do not take this as personalised financial or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.
Last updated: 07/08/2019