Bitcoin Price Surges to One-Month High; Bullish Crossover Confirmed

Bitcoin’s price completed a bullish crossover on Saturday, adding credence to the view that the worst of the market downturn had passed.

BTC/USD Update

The bitcoin price ticked $7,262.20 on Bitfinex, the highest in nearly one month. The leading digital currency would eventually stabilize above $7,200 for a gain of 2.8%. Daily trade volumes amounted to $4.5 billion, according to CoinMarketCap.

With the latest rally, bitcoin has completed a bullish crossover, with the 50-period moving average crossing above the 200-period MA, according to the 4-hour chart. Price action suggests that further gains are likely in the near term. The relative strength index (RSI) confirms the bullish bias.

The bitcoin price has rebounded 22% from last month’s swing low. The next hurdle with major implications is $8,000, a level that has eluded the bulls since late July.

Bitcoin has a total market capitalization of $124 billion but its share of the overall market has declined in recent days. At press time, bitcoin’s dominance rate had fallen to 52.2%, according to CoinMarketCap.

The combined value of all digital currencies in circulation reached $237.6 billion, the highest since Aug. 7. Among the top-100 coins by market cap, 96 reported gains.

Bitcoin cash emerged as one of the biggest gainers, surging 15.3% to $621. Ethereum climbed 6.2% to $297. XRP added 4.9% to reach $0.348.

Newfound Stability

Despite losing roughly 10% of its value in August, bitcoin is exhibiting rare stability relative to its short history. As Hacked reported 11 days ago, bitcoin’s month-on-month volatility has declined sharply since prices peaked in December. The latest data provided by Diar, a weekly institutional publication on digital assets, suggest bitcoin’s price volatility has declined to its lowest in 14 months. As Diar reported, the decline in volatility is positively correlated with the launch of bitcoin futures.

What’s more, futures traders are unwinding their bearish bets on bitcoin, according to recent data from the U.S. Commodity Futures Trading Commission (CFTC). Short positions on CME bitcoin futures declined in August to the lowest level on record. For the week ended Aug. 21, the net position on the contract totalled -1,266. At the same time, the volume of bitcoin futures listed on CME doubled in July and rose in August.

The debate over bitcoin exchange-traded funds (ETFs) is expected to heat up again after Labor Day, with investors eyeing a final decision on the VanEck SolidX Bitcoin Trust scheduled by Sept. 30. On Aug. 22, the U.S. Securities and Exchange Commission (SEC) rejected nine other ETF applications submitted by Direxion, ProShares and GrainShares. However, the VanEck proposal is widely regarded as having the best chance of gaining approval either in September or sometime next year.

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.

Featured image courtesy of Shutterstock.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi