Tight ascending uptrends are a hallmark of institutional accumulation. Such a pattern seems to be emerging in Bitcoin now.
Notice the lack of significant pullback over the last two weeks. Bitcoin has chopped down a few times, but each time made a higher low: August 12 was higher than August 9, August 19 was higher than August 12, August 26 was higher than August 19, and September 1 was higher than August 26.
Next, consider how some of those bounces occurred at the 200-day simple moving average (SMA) and 21-day exponential moving average (EMA).
Speaking of moving averages, the 100-day SMA turned positive on August 23. We viewed this metric as important on August 12 for the uptrend to continue. (See our custom script Moving Average Speed.)
The same post highlighted the importance of the price zone around $47,000. Bitcoin battled that line for about a week before breaking out, then spent the rest of August turning the old resistance into new support. (The last test and hold was on September 1.)
The consolidation and resulting price compression dragged Bollinger Band Width to its lowest percentage since mid-July. That creates the potential for a breakout from the volatility squeeze.
Finally, notice how MACD turned positive yesterday.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Notice the lack of significant pullback over the last two weeks. Bitcoin has chopped down a few times, but each time made a higher low: August 12 was higher than August 9, August 19 was higher than August 12, August 26 was higher than August 19, and September 1 was higher than August 26.
Next, consider how some of those bounces occurred at the 200-day simple moving average (SMA) and 21-day exponential moving average (EMA).
Speaking of moving averages, the 100-day SMA turned positive on August 23. We viewed this metric as important on August 12 for the uptrend to continue. (See our custom script Moving Average Speed.)
The same post highlighted the importance of the price zone around $47,000. Bitcoin battled that line for about a week before breaking out, then spent the rest of August turning the old resistance into new support. (The last test and hold was on September 1.)
The consolidation and resulting price compression dragged Bollinger Band Width to its lowest percentage since mid-July. That creates the potential for a breakout from the volatility squeeze.
Finally, notice how MACD turned positive yesterday.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
