Bitcoin Price Rally Shows Promise After Technical Breakthrough
Bitcoin is eyeing a potentially bigger breakout this week after prices crossed the 20-day and 50-day moving averages, signaling renewed momentum for the largest cryptocurrency.
Bitcoin Price Levels
The bitcoin price touched a new intraday high of $6,761 on Tuesday, as trading volumes topped $4.9 billion for the first time since July 6. More importantly, the recent uptrend pushed prices above their short-term moving averages. The 50-day MA was breached for the first time since May.
Relative strength has also shot up into bullish territory, with values rising above 60, according to Barchart data.
Bitcoin attempted a similar breakout last weekend but was eventually pushed back to the $6,100-$6,200 region as part of a market-wide breakdown that came to a head on July 12. However, BTC/USD continued to defend $6,000, a sign that the market had put a firm bottom on prices.
With a short-term bottom established, prices may be poised for a re-test of the July 8 high of $6,886. From there, the psychologically significant $7,000 comes in play.
Crypto Market Consolidates
The broader cryptocurrency market continued to show poise Tuesday as the majors continued to trade near weekly highs. As Hacked reported earlier, the cryptocurrency market cap swelled more than $20 billion at the start of the week amid reports that BlackRock is exploring a potential entry into the blockchain arena.
Positive news has kept coming after IBM confirmed it is working on a new stablecoin project to help banks streamline international payments.
Bitmain, China’s largest bitcoin mining manufacturer, was also in the headlines after announcing a stake in Block.one, the parent company behind EOS. CCN also reported Tuesday that Bitmain has set up a 20,000 square-foot facility in Silicon Valley ahead of its planned initial public offering (IPO) later this year.
Last month, the company concluded a successful $400 million funding round, which catapulted it to the top of the global blockchain ranks.
As Hacked previously reported, the cryptocurrency market has largely discounted the wave of positive developments taking place over the past three months, a sign that regulatory scrutiny was keeping investors on the sidelines. Trading activity at the start of the week suggests more capital is flowing into the market, though the absence of new traders is generally reflected in overall trade volumes.
That said, 24-hour trade volumes crossed $15 billion on Monday for the first time in over a week.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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