Bitcoin
$42,559.71-3.63%
Ethereum
$2,956.73-5.80%
XRP
$0.934522-3.83%
Cardano
$2.17-4.32%
Polkadot
$27.98-5.68%
Stellar
$0.269327-4.26%
Dogecoin
$0.201815-2.82%
Uniswap
$23.56-6.87%
Chainlink
$23.46-6.80%
Algorand
$1.71-6.60%
Polygon
$1.10-5.15%
Cosmos
$37.59-6.32%
Litecoin
$147.05-4.34%
Bitcoin Cash
$494.82-3.47%
Wrapped Bitcoin
$42,523.10-3.53%
The Graph
$0.674098-2.41%
Filecoin
$58.90+1.41%
Tron
$0.087045-3.16%
Ethereum Classic
$46.17-3.98%
Tezos
$6.11-7.11%
Aave
$276.45-9.10%
Monero
$243.31-0.10%
NEO
$37.91-4.48%
EOS
$3.88-5.03%
IOTA
$1.15-5.62%
BitTorrent
$0.003135-3.92%
Bitcoin SV
$128.54-2.29%
Maker
$2,345.88-0.79%
Waves
$23.02-5.71%
Dash
$158.00-4.76%
Decentraland
$0.679068-4.77%
Decred
$108.34-5.99%
ICON
$1.51-8.78%
OmiseGO
$9.49+3.87%
NEM
$0.143382-4.79%
Zcash
$107.02-5.20%
Paxos Standard
$0.990986-0.01%
Yearn Finance
$29,504.81-5.72%
NuCypher
$0.268842-4.62%
Ren
$1.04-8.91%
Qtum
$9.36-5.45%
Bitcoin Gold
$50.32-4.81%
Basic Attention Token
$0.616000-5.26%
0x
$0.863309-6.24%
Fetch.ai
$0.742512-8.48%
Kava.io
$5.54-4.95%
Bancor
$3.43-4.96%
Band Protocol
$7.20-5.70%
Siacoin
$0.014335-4.92%
Nano
$4.28-6.94%
Loopring
$0.371724-2.20%
Storj
$1.04-4.69%
Numeraire
$40.33-3.05%
Civic
$0.417588-5.67%
Lisk
$2.72-5.50%
PAX Gold
$1,760.10-0.39%
Orchid
$0.311846-3.06%
Enzyme
$139.15-9.83%
Augur
$20.77-2.00%
Aragon
$4.40-6.78%
district0x
$0.145954-3.92%
Kyber Network
$1.41-5.91%
SingularDTV
$0.001192-1.08%
Tether
$1.00-0.01%
USD Coin
$1.00+0.03%
Dai
$1.00-0.03%
Breaking news: Ethereum Developer Virgil Griffith Pleads Guilty to Conspiracy Charge in North Korea Sanctions Case

Cautiously Bullish: Bitcoin Price Clears Key Trendline to Pass $6.6K

Bitcoin took a bullish turn Monday, but caution is warranted as trading volumes remain near yearly lows.

Oct 9, 2018
CoinDesk Insights

Bitcoin saw a low-volume bullish breakout Monday, but the long-awaited move is sending mixed signals to investors

The leading cryptocurrency cleared the trendline sloping downwards from the July 25 high and Sept. 5 high around midday yesterday, adding credence to the argument put forward by many, including billionaire investor Novogratz, that the market has carved out a long-term bottom around $6,000.

However, so far, the bullish trend change hasn't significantly revved up investor interest. This is evident from the fact that the total trading volume rose by a meager 15 percent yesterday, according to CoinMarketCap. More importantly, 24-hour trading volume is holding below $4 billion (near the yearly low so far).

Further, the follow-through has not been impressive either. By now, one would have expected BTC to be trading above last week's high of $6,741. After all, the breakout occurred after a prolonged period of low volatility action. Instead, it is trading at $6,650 at press time and is holding just above the trendline support (former resistance) of $6,630

Hence, there is merit in being cautious, despite BTC's move above the falling trendline.

Daily chart

As seen in the daily chart, BTC closed above the 2.5-month long falling trendline yesterday, signaling a bullish reversal.

However, the lackluster response to the upside break likely indicates that investors need a more credible evidence of a bullish breakout.

The cryptocurrency is likely to adopt a stronger bullish bias if it can cross the next key hurdle at $6,775 (upper Bollinger band) on the back of strong volumes.

Weekly chart

As can be seen, BTC has been struggling to find acceptance above the 10-day exponential moving average (EMA) since mid-September. Therefore, BTC's upside break of the trendline, as seen in the daily chart, would look more convincing once the 10-day EMA is scaled.

View

  • BTC took a bullish turn Monday, opening doors for a rally to $7,000, but low volumes suggest caution is advised. The bullish move will look more legitimate if the 24-hour trading volume crosses $5 billion in the next few hours.
  • The outlook would change from cautiously bullish to strongly bullish if BTC can rise above the 10-week EMA at $6,712. As per the daily chart, a move above the upper Bollinger band of $6,775 would also bolster the bullish setup.
  • A UTC close back below the 2.5-month-long falling trendline would neutralize the immediate bullish scenario.
  • A break below the Oct. 3 low of $6,424 would put the bears back into the driver's seat.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; Charts by Trading View 

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...