The last week has been huge for cryptocurrencies. We learned that testing for Ethereum 2.0 may begin as early as Aug. 4. The Office of Comptroller of the Currency (OCC) also decided that U.S. banks can hold cryptos on behalf of customers. MasterCard and Visa both had took incremental steps toward the space as well.
Price action has been following the news.
ETHUSD
broke out first, ripping though its February high around $289 and yesterday Bitcoin followed suit with a move above $10,500.
BTCUSD is more important because it’s still dominant at 61 percent of the market. Investors likely need to see it gain traction before committing seriously to the crypto space.
That makes Monday’s breakout through $10,500 potentially very important. So far the charts seem to confirm the move.
First, and most important, BTCUSD has remained entirely above $10,500 since the breakout. It tested within $83 of that level this morning before bouncing. Old resistance becomes new support – a key pattern.
Second, volatility dried up before the move. The daily chart shows Bollinger Band Width narrowing to the tightest level since November 2018.
Third, the MACD histogram has quickly opened to the upside. This suggests momentum could be starting to improve.
Fourth, the hourly chart shows much smoother and more consistent trading than other times in recent months. For example the June 1-2 “Bart Simpson” pattern featured a single large bullish candle on huge volume, with absolutely no follow-through. This time we see a breakout to new highs, steady and rising volume, followed by a new high several hours later.
All those patterns suggest the current move in Bitcoin could have more staying power. Now that halving is finished, traders might want to lean toward buying the dips in the world’s biggest cryptocurrency.
June 1-2 (hourly):
This week (hourly):
Price action has been following the news.
ETHUSD
broke out first, ripping though its February high around $289 and yesterday Bitcoin followed suit with a move above $10,500. BTCUSD is more important because it’s still dominant at 61 percent of the market. Investors likely need to see it gain traction before committing seriously to the crypto space.
That makes Monday’s breakout through $10,500 potentially very important. So far the charts seem to confirm the move.
First, and most important, BTCUSD has remained entirely above $10,500 since the breakout. It tested within $83 of that level this morning before bouncing. Old resistance becomes new support – a key pattern.
Second, volatility dried up before the move. The daily chart shows Bollinger Band Width narrowing to the tightest level since November 2018.
Third, the MACD histogram has quickly opened to the upside. This suggests momentum could be starting to improve.
Fourth, the hourly chart shows much smoother and more consistent trading than other times in recent months. For example the June 1-2 “Bart Simpson” pattern featured a single large bullish candle on huge volume, with absolutely no follow-through. This time we see a breakout to new highs, steady and rising volume, followed by a new high several hours later.
All those patterns suggest the current move in Bitcoin could have more staying power. Now that halving is finished, traders might want to lean toward buying the dips in the world’s biggest cryptocurrency.
June 1-2 (hourly):
This week (hourly):
