Bitcoin Double-Tops at $9,100, Low Timeframe Retrace Begun — Price Analysis

  • LTF (Low timeframe) trend: Could see consolidation/downtrend above $8,600
  • MTF trend: Strong uptrend looks unlikely to be held for long
  • HTF trend: Downtrend nearly canceled – not quite yet though

A new MTF (medium timeframe) uptrend looks locked in now, as Bitcoin (BTC) has taken some strong legs up in the past couple of days after finding support over the weekend in a clear support zone. The leading crypto yesterday tested $9,100 for the second time in January, and the level seems unlikely to hold the new uptrend for long.

We start on a 4-hour chart, and see that Bitcoin has plowed through the $8k range in the past two days and retaken the resistance zone from earlier in the month, just under $9,000. $9.1k is a critical level, and if it breaks, we essentially confirm an end to the H2 2019 downtrend (more on this later).

A little overheatedBTC chart by TradingView

This may have to wait, though, as the indicators on this chart look overcooked: the RSI is in overbought territory, and the histogram has started to point down after an intense rise. However, with things clearly looking bullish and the MTF trend clearly up, this pullback is more likely to be brief.

Moving to the daily, we get a better sense of the resistance that Bitcoin is currently chewing through, and how close it is to break it. We’re currently in the middle of the second attempt to break $9,100; but this time, the attempt comes toward the beginning of an MTF uptrend, rather than at the end of one like on 19 January.

In the thick of itBTC chart by TradingView

Volume is looking good on Bitstamp, with nearly half yesterday’s volume while being not even halfway through today’s trading. We see a flat bullish expansion on the histogram, which could easily cross positive today or tomorrow. Only a serious rally from the bears will hold this uptrending momentum.

Finally, looking at the weekly to get a HTF context, we see that BTC is very close to confirming a break of the HTF downtrend. The RSI is nibbling at the historical bullish inflection zone, starting at 54%; and the histogram is just now crossing back into positive territory for the first time since August.

very close now...BTC chart by TradingView

Things could still go south: a concerted bear rejection at $9,100 could be disastrous for the leading crypto, and being sent back down into the bear channel from here would probably mean another six months – or more – of downtrending.

But as it stands, this looks unlikely, and the trend simply looks bullish. Bitcoin held well during last week’s critical retest, and the fruits are blooming this week.

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