Bitcoin Showing Signs Of Life, Rallies Above $6500

Posted Friday, September 21, 2018 by
Shain Vernier • 1 min read

Bitcoin (BTC) is back! Well, sort of. Its appears that BTC bulls have warded off a September test of the $5000 level. Cryptocurrencies as a whole have had a nice week, with the big four cryptos trading to the green. Not a whole lot has developed on the news or rumor front over the past several sessions. For now, things are beginning to look up for BTC as the fall season approaches.

Performance Metrics

The last seven days on the crypto cash markets have been pretty good for net longs:

Coin                                          Percentage Gain

Bitcoin (BTC)                                 +3.15%

Bitcoin Cash (BCH)                       +7.02%

Ethereum (ETH)                            +6.91%

Litecoin (LTC)                                +2.0%

After a dreadful 2018, cryptocurrencies look to be gaining some momentum going into the home stretch. In the event the U.S. Securities and Exchange Commission (SEC) surprises with a BTC ETF approval, we may be in for a robust 4th quarter of the year in the crypto sphere.

Bitcoin (BTC) Futures: Technical Outlook

September BTC futures have put together a big day, opening gap up and extending to the bull. Upon the 78% macro retracement level ($6205) holding firm, BTC has rallied by more than $500.

September Bitcoin Futures (BTC), Daily Chart
September Bitcoin Futures (BTC), Daily Chart

Here are the levels to watch for the late-U.S. session:

  • Resistance(1): Daily SMA, 6780
  • Support(1): Bollinger MP, 6562

Overview: BTC has driven higher on intraday time frames, posting repeated tests of the Daily SMA (6780) during the mid-U.S. session. At press time, it appears that we are headed for a non-committal close, between the Daily SMA and Bollinger MP. This is a big deal, as we may be in line for consolidation before another directional move.

All in all, BTC has generated some momentum going into the weekend. If a strong open on Monday develops, then extension above topside resistance will occur and a return to $7000 is highly likely.

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