Bitcoin buyers were active over the weekend as the cryptocurrency broke above the 50-day moving average near $34,000. The intermediate-term downtrend is moving backward, although resistance near $40,000 might cause some profit taking.
Upward momentum is getting better after several months of stabilization and multiple oversold readings on the charts. Bitcoin was trading around $38,000 at time of the news. And also is up 10% over the past 24 hours. Early Monday, the price climbed to about $39,500.
The Relative Indicator
- The relative strength indicator(RSI) on the daily plot is reaching overbought levels for the first time since April. This might lead up to a short period of profit-taking near the 100-day moving average at $40,000.
- The weekly RSI is not oversold, however its selling pressure since May is starting to slow.
- Price action is firm with last rallies from $30,000 support, although more persistent given the break above the 50-day moving average.
- Bitcoin stays in a consolidation phase until price moves above $40,000. Which is the top of a two-month range. The primary support is seen around $34,000, which might stabilize a pull-back.
Bitcoin shortly traded above $39,000 for the first time since June 16. And now it is trading its sixth consecutive day in the green at the moment.
Prices have kept to rally since July 21, with Sunday’s current price rise showing the largest single daily gain in the past six weeks. The world’s largest crypto, bitcoin, is changing hands for around $38,250. And it got cooled a little after hitting a monthly high of around $39,850.
Datamish data indicate a short pressure emerges to have driven prices higher as those betting on bitcoin heading lower had to sell in fast sequence to cover. The reason is not clear.
“This price action is aligning with what we’ve been seeing the past couple of weeks,”. Daniel Kim, head of capital markets at Maple Finance said it . “Borrowing rates for USD have started to increase from its lows.”
“We’ve also been seeing a significant increase in demand for USDC from institutional borrowers and the sentiment seems to be bullish following the news of Amazon participating in bitcoin,” Kim mentioned.
An unconfirmed single-source story in City A.M. reported that the big retail company, Amazon is looking to accept bitcoin payments by year’s end and is thinking minting its own token by 2022. The company is also looking for a Digital Currency and Blockchain Product Lead.
Others reason the bounce back in crypto prices is a reflex to a range of good news coming from big tech and finance players from the U.S. markets.
“Most prominently, there were conversations held last week between Jack Dorsey, Elon Musk, and Cathie Wood at the Bitcoin Conference where they talked about where they see bitcoin and cryptocurrencies going with respect to their own organizations,” . This was Caroline Bowler, CEO of Australian crypto exchange BTC markets saying.