Is Bitcoin Inching Towards An Upward Swing?

By Prashant Jha

Of late, the price of Bitcoin (BTC) has mostly remained stuck within a close range, moving sideways with demand and supply being almost equal. However, some new developments are beginning to suggest that BTC’s bull run might not be that far away and the largest cryptocurrency might just manage to break forth from the symmetrical triangle consolidation it has been mostly fixed within. The price has begun to close upward of the triangle top, indicating that a skyward move may be on the cards soon.

A glance at the simple moving average or SMA figure of the currency may help us understand how BTC has been silently picking up momentum. The short-term SMA of 100 managed to overtake the comparatively long-term 200 SMA, proving that an upward swing is a possibility. If the swing is strong enough time withstand the uphill climb, it would mean a reversal of fortunes for the virtual currency that has remained mostly bearish through the first two quarters of this year. The moving averages are also in consonance with the broken top of the triangular chart, that strengthens the floor as the graph sustains another downward swing.

The stochastic distribution, a random probability distribution curve, is also tending towards a higher level while shying away from the level of going oversold, which suggests that buyers are willing to make a return. The relative strength index of the token is showing some consolidation by shifting sideways but its tendency towards moving back upward points towards a possibility of bullishness in the BTC market. However, the levels of $7000 to $7400 might prove to be difficult to overtake, as the slow stagnancy of the price doldrums can significantly inhibit growth. However a ceiling could be reached around a peak level of $8400.

Many commentators have been saying that bitcoin prices are bottoming and that has only served to further dampen the already bearish market. However, many factors are actually now in a position to serve as a catalyst for a bullish trend, especially since funds are expected to flow in from retail and institutional sectors.

Despite the positive atmosphere, it is still advisable to be careful about making predictions as SEC’s rejections of several BTC ETF applications still does not bode too well for the industry. While approvals and a positive regulatory approach could fuel the upward swing, the contrary could also make the entire momentum come undone.

Even so, ICE’s Bakkt platform could make the future of BTC more volatile and expand volumes. However, this too is not a certainty since 2017’s CME Bitcoin launch actually caused a dip in prices.