The price of Bitcoin accumulates at the bottom while the pressure towards the top is growing

The probability of a bitcoin (BTC) bullish move has increased over the last 24 hours.

To begin with, the leading cryptocurrency remained well above the key support of $ 6.230 (August 20 low) despite the ETF Rejection, adding credibility to our assessment that the cryptomarkets had already discounted the bad news

In addition, the decision of the US Securities and Exchange Commission (SEC) to review the rejection of the nine funds traded on the stock exchange with bitcoins (ETFs) could demoralize bears and trigger a break-up of short positions.

It is worth noting that the BTC / USD short films on Bitfinex are poised close to the historical highs seen on 12 April. So, there is the real risk of a significant short-coverage rally.

BTC / USD Borts on Bitfinex

And last but not least, the technical table below indicates that the path of least resistance remains on the upside while BTC holds above the crucial rising trend line.

Cryptocurrency is a change of hands at $ 6.550 at the time of printing – an increase of 1.6 percent on a 24-hour basis, after touching the low of $ 5,859 on August 14

4-hour chart

BTC continues to create higher lows (bullish trend) along the rising trendline. The bullish crossover between the 50 candlestick and 100 candlestick (MA) averages also favors additional BTC gains.

Furthermore, a long period of consolidation often paves the way for a violent move, according to technical theory. [19659002] So, the bullish move may be strong, similar to the one we saw on April 12th, as the Bollinger bands (standard deviation of +2, -2 on 20 MA candles) were flattened by August 11 , meaning the cryptocurrency lacks an obvious injury for almost two weeks.

View

  • The odds are stacked in favor of a violent uptrend move in bitcoins to $ 7,000 (psychological hurdle).
  • The bullish view will be canceled if BTC finds acceptance below the growing trendline support, currently located at $ 6.432.
  • BTC bears will probably be encouraged and could push the cryptocurrency below $ 6,000 (February low) if prices see a near UTC below $ 6,230 (August 20th minimum).

Disclosure: The author does not hold cryptocurrency assets at t writing time.

Bitcoin image via Shutterstock; Trading View Charts

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