Perhaps it’s Libra, sucking all the air out of the crypto room, but Bitcoin (BTC) is enjoying some moments of calm within a potential consolidation pattern.
Looking at the 2 hour chart, we notice Bitcoin trending cautiously up in an ascending triangle pattern. Volume (Bitstamp exchange) is falling suggesting consolidation, and price is squeezing between the 55 exponential moving average (EMA, pink) and the upper limit of the current trading zone of $9,400.
Price has held twice at this moving average, which itself is currently perfectly in sync with the local uptrend – a good place to try a small long with a tight stoploss.
We also note a positive RSI picture on the 2 hour, with uptrending lows and equal peaks forming after what looked like the start of a breakdown. Given Bitcoin’s bullishness of late, there is no reason why this formation could not break out for a final stab at the momentous $10,000 point. A breakdown back to $8,800, however, is certainly possible and would be cause for acute attention.
Looking at Bitcoin in another light, on the 4 hour, we note the consistent respect of the borders of a parallel channel since early May. The middle line of this channel lies at $8,800, while the top intersects $10,000 neatly. The bottom of the channel intersects with about $8,200, and all of these price targets would match Bitcoin’s current trading range.
The tepid movement has given the leading crypto plenty of time to cool off its indicators, and RSI again has some runway to return to oversold conditions if it wants to.
Libra on the Brain
As mentioned above, Facebook’s non-public crypoasset Libra has been the focus of the industry in past days. Data from TheTIE shows that roughly 75% of tweets mentioning both Bitcoin and Libra have spoken positively of bitcoin. It appears that the majority of crypto twitter sees Facebook’s Libra as a positive development for bitcoin.
(source: The TIE)
The number of Bitcoin tweets has risen significantly, the 30 day average of bitcoin tweets is 29,355 up from the beginning of 2019 where the avg bitcoin tweets per day was 22,000 (see blue line). We can see the 30 day moving average (green line) of bitcoin tweets grew throughout the month of May, in line with climbing bitcoin prices. Early June saw the number of daily bitcoin tweets drop off, however, Facebooks Libra may have sparked further conversation as daily bitcoin tweets are back on the rise.
(source: The TIE)
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
