Bitcoin has continued to tear higher. As of the time of writing this, the flagship cryptocurrency is up 5% in the past 24 hours, finding itself trading for $12,500 a piece. Altcoins, interestingly, have not followed suit, perpetuating a trend of non-BTC crypto assets underperforming as Bitcoin sees a strong performance.
As seen in the chart above, this move marks a clear break of the $11,800 resistance level, which has acted as a price roadblock in this rally, the previous move to $14,000, and 2017’s cycle. As this move occurred just minutes ago, it remains to be seen whether or not the momentum will continue. But, ever since hitting $9,100 a number of weeks back, Bitcoin has been in a clear trend to the upside.
Bitcoin Decisively Retakes $12,000
Weeks ago, a number of analysts were calling for Bitcoin to retest $6,000 once again, which would have the bears’ one last hurrah prior to a jaw-dropping bull run to new all-time highs. It appears that this won’t be happening… for now.
As outlined earlier, BTC recently began to surge higher, pushing past $12,000 in a move that caught many traders with their pants down. This move reinforces the idea that Bitcoin bulls are back.
Altcoin Pyscho, a popular analyst, noted prior to this move that the Super Guppy, a technical indicator that aims to predict trends, flipped back to green (bullish) from gray (neutral). As seen below, BTC could ride the green guppy, as it did from April to late-June, to new year-to-date heights.
$BTC— Altcoin Psycho (@AltcoinPsycho) August 6, 2019
Guppy just flipped green after trend went neutral for a bit.
Notice how it never flipped red... This is why the guppy is my favorite trend tool to avoid being shaken out early pic.twitter.com/VqFuFXQ2jv
That’s not the only positive technical sign. Per previous reports from NewsBTC, Joe McCann recently observed a bullish crossover of the Moving Average Convergence Divergence (MACD), an indicator that tracks trends, on Bitcoin’s daily chart.
As McCann points out in the chart above, the last two times that Bitcoin has seen this signal in this cycle was preceding two three-weeks surges to the upside of 52% and 61%. Should history repeat itself, BTC could surge to around $17,000 by the end of August.
What’s interesting, this potentially strong performance may set the stage for the rest of the year’s price action. Per previous reports from this outlet, cryptocurrency investor Timothy Peterson wrote that “historically, BTC returns in August have set the tone for the rest of the year.”
This move comes, of course, as the Dow Jones and other prominent stock indices have fallen by upwards of 2%, seemingly off of continued tension between the United States and China.
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