Bitcoin Golden Cross On Daily
Tom Whitbread | Jul 09, 2018 01:43AM ET
Bitcoin (BitfinexUSD) price has remained boyant over the weekend causing the 9 and 26 period daily moving averages to golden cross.
A history of previous crosses has been highlighted also on the chart above; and has consistently marked the start of significant movements. If a firm bid continues into later this week the next key focus would be the higher 50 and 100 DMAs which are displayed below.
Clearly the 50 DMA has become closer and closer with BTC/USD hitting monthly highs during the weekends trading sessions, with the 50 DMA acting so far as a resistance.
Could we see a breakout to the upside this week amid further trade war concerns? Or will BTC/USD breakdown and sell off - to find support in the lower $6k range again?
The order books seem overly split, possibly due to a large amount of remaining shorters who shorted the bottom ranges and are hoping to close out their positions as soon as possible.
Of course as scarcity of Bitcoin increases by the minute, short sellers risk increases diametrically when opposed to long term hodlers.
In the event of a further decline in the Dollars buying power we could see a rather violent short squeeze on the king of crypto.
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