After a very bearish month, the price of Bitcoin started to rise mildly. A slow increase on the 23rd and 24th of August raised the bar from the downward trend which began at the end of January.
In the trading world, small victories make the difference in the long run. Regarding bitcoin, the most positive fact of the daily course is that the recent ETF declines and Chinese initiative against peer-to-peer trading did not affect the price what so ever. Similarly, the different price projections around bitcoin from various experts left investors rather cold. Overall, it is positive to note that the market is not as nervous and news-driven as it was in 2017.
The Bitcoin price has overcome an important resistance and is currently testing the exponential moving average EMA50:
Equally positive is that the two indicators MACD and RSI are rising. Whether that is enough to overcome the downward trend we will have to see; in plus, the trading volume is very low.
While the bull market is not there yet, the crypto sector would not be the same without the exaggerated expectations.
Strictly speaking, the expectations are for the moment incorrect. The price index indicates that the price of Bitcoin has risen by four percent in the last week. Today, the price has risen only 1.5 percent.
Except for IOTA, which has had an exponential16 percent rise last week, this is the best result in the top 10. While the price increase and the current test of the EMA50 is a positive sign, is still too early to start fantasizing a beginning of a bull market.
When will the bull market come?
As often emphasized an effective measurement is the MA20 of the weekly chart. In this case, if the MA20 indicator keeps its current direction for the next two to three weeks, we can speak again of a new bull market.
In previous scenarios, the weekly MA20 became the support in the ongoing bull market since the end of 2015, which lasted until the end of January and has been a price resistance since then.
According to the charts, the MA20 has been tested three times since bitcoin’s falling. However, it has always proved to be a powerful resistance point for the cryptocurrency. The MA20 is currently around $ 7,400. At the current price of $ 6,700, the bitcoin must rise above 12 percent.
That is by no means impossible. The rise above the downward trend pursued since January is a good start in this respect.