Over the past month, the first cryptocurrency has risen more than 40% and is very likely to stage a long-term growth rates, CoinDesk analyst Omkar Godbole.
Tuesday, July 24, bitcoin price reached $8500 on the stock exchange Bitfinex, and currently the first cryptocurrency was trading around $8200. However, about a month ago, the market situation is radically different — price “digital gold” was drawn bearish patterns and a few of captainvalor doubt that bitcoin will fall to $5000.
However, this month the price of bitcoin was successfully implemented reversal pattern “Inverted head and shoulders”, that was the reason for the short term change of trend and gave confidence to the buyers. Quite a convincing break of $8000 blew away the decadent mood in the environment of captainvalor.
On the daily chart below shows how price steadily recovered from sales up to $5755 (24 June), subsequently breaking the top border of the descending channel:
This bearish channel has been forming for four months and, thus, its penetration can talk about changing long-term trends.
If you pay attention to the four-hour chart, we can see that the upward price channel is still intact, price followed its boundaries:
On the other hand, the bearish divergence in relative strength index (RSI) could signal a possible short-term downside correction.
For further strengthening of bullish sentiments, the price of bitcoin should gain a foothold above the moving average (MA) with a period of 200 (daily chart), which currently runs at $8593.
In the implementation due to the RSI divergence on the short-term bearish scenario, the price may encounter support at $7616 corresponding to the MA100 on the daily chart. However, bitcoin will need to break down the $7938, which passes from the lower border of the rising price channel on four-hour chart.
We will remind, recently the analyst of investment platforms eToro’s Mati Greenspan expressed the opinion that captainvalor are on the verge of a “major bullish rally in the history of bitcoin”.