Bitcoin Breaks Clear Into $8K In New Uptrend — Price Analysis

  • Short term trend: An uptrend remains, but a correction should come soon
  • Long term trend: Still remains technically down, but a reversal now seems likely

Bitcoin (BTC) yesterday broke out of its local market structure, and well above $8,000 in what is looking ever more like a long term reversal. The indicators look stellar in the short term, although we should definitely be expecting more selling to come in soon. This is a perfect start to a bullish 2020.

Starting on the 4-hour chart for a close view of the action, we see the breakout level at $7,600 has been added to by about 10%. The indicators are humming along: volume has only increased as the breakout progressed, as has RSI strength on this timeframe; the histogram has also added higher peaks and increased bullish expansion on the move up.

No clear flagging in surgeBTC chart by TradingView

This is an extremely healthy push up, and although the indicators are technically overbought, this uptrend could probably put in at least one more leg up before a selloff comes. We can see on this current 4-hour candle that the 8 EMA has been almost tested and has held. But price is now dangerously extended from the EMAs, and a correction should come soon, likely within the day.

Moving to the daily, we see that the RSI is approaching technically overbought conditions; but it is not yet even within this technical range. And given the strength of this surge, we could easily expect the rest of the channel to be filled in up to $8,800.

Still clear to $8.8kBTC chart by TradingView

The histogram here is starting to cool off at time of writing, but the daily candle has some time left before being painted. Volume is also on track to at least match yesterday’s bullish day. Overall, we are likely to see heavy selling coming in around $8,800 if not sooner.

On the weekly, we see Bitcoin really turning around, with a histogram contracting sharp bullish only days before it is painted on the chart.

Really look goodBTC chart by TradingView

Closing above the 21 EMA would be extremely bullish and likely signal a long term reversal (although we can see the fakeout from October along the same lines), and also that the RSI is reapproaching what seems to be a key level at 56.

Bitcoin is looking great. The surge is strong and healthy, and could well inaugurate a bullish 2020. Time will tell if it does.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Featured Image Credit: Photo via Pixabay.com

Cannabis Shops Turn to Crypto Apps Amidst Coronavirus Cash Shortages

Michael LaVere
  • Cannabis shops in Boulder, Colorado are using bitcoin payment app Strike to conduct "contactless" exchanges.
  • Cash shortages and lack of sanitation are causing businesses to find alternative means for transaction. 

Cannabis shops are using bitcoin payment services to conduct business in place of fiat amidst the coronavirus pandemic. 

According to a report by CoinDesk, cannabis dispensaries in Boulder, Colorado have been onboarded to the closed beta for Strike, a bitcoin payment service application founded by lighting network supporter Zap. 

Zap, founded by Jack Mallers, has been operating a closed beta for the payment application Strike which allows users the option of sending bitcoin or dollars and receiving funds in their bank account. The application uses a simple QR code interface, similar to Venmo, that allows users to send funds without having prior knowledge or expertise with bitcoin. 

Mallers said, 

Every Strike user is given a public domain at strike.me. We’re using Lightning for really fast online settlement of value transfers. … It’s also beneficial for privacy on the sender’s side.

Johnny Kurish, general manager at Boulder’s Helping Hands Herbals cannabis shop, said the application allowed his dispensary to process $1,000 worth of purchases since being added to the beta last week. 

Kurish said the dispensary will switch to only accepting Strike payments, which allow for contactless exchanges in light of the coronavirus pandemic. 

He said, 

We’re really lucky to have curbside drop-offs. We check the ID through the roll-up window, deliver the cannabis to a podium in front of the car. We’re happy to reopen with an option that’s safe for our staff.

Featured Image Credit: Photo via Pixabay.com