Is Bitcoin Rising Again?
Bitcoin for a long while now has been within a narrow and unimpressive price range but an improvement of 9% this week is a positive sign of a bullish time to come.
Recording a pennant resistance of $7,000 last week, investors predict a likely pennant resistance rise to about $8,870. If this happens, Bitcoin is no doubt set to rise once again. However, for this to happen, Bitcoin needs to scale drastically first its 50-week Moving Average resistance which it still currently operates on.
A careful analysis of Bitcoin’s weekly performance chart shows that Bitcoin narrowly escaped a bearish low last week, one that would have brought it below $6,000. Bitcoin escaping that, went on to record a rally of about $7,700 which puts it in a safe position and if it grows in the coming week, then Bitcoin’s rise is certain. Notwithstanding this improvement, it won’t be right to jump to the conclusion that this entirely means a bullish experience for Bitcoin. This is because similar cryptocurrencies in the markets have been this close to breaking forth into a bullish period, but missed it one way or the other.
To sustain this progress made by Bitcoin in the past week, there needs to be an impressive leap – one that will really surpass its present 50-week Moving Average resistance. When this breakthrough is recorded in its moving average, a consistent increase in trading activities between traders and issuers of Bitcoin will erase every iota of doubts as to whether Bitcoin is set for a bullish period or not, leaving the answer in the affirmative.
As it stands now, a quick overview of Bitcoin’s daily performance is almost becoming too convincing. Bitcoin drastically surpasses it’s daily Moving average resistance and if it maintains this tempo up until the end of the week, it is set to record a likely $8,880 pennant resistance. This will once again validate the ‘6th of the month’ theory, a theory that explains an increase in cryptocurrency value based on an alternating monthly cycle.
While every sign seems to be pointing at a breakthrough for Bitcoin at the end of this week, it is necessary we keep our fingers crossed to see the outcome. If Bitcoin can beat its weekly moving average and backs it up with a corresponding increase in trading volume, your guess is as good as mine.
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