A Battle Of Trendlines
#bitcoin #crypto
Today the story on Bitcoin is quite simple from a technical perspective. We have a battle of trendlines occurring. On our price chart Bitcoin is back down to that purple ascending support. Technically, this is great news as we needed a retest here before further upmovement (if that is the current trajectory). However, there is some trouble on the RSI as we bang our heads on resistance. Which will win?
Let’s jump to our weekly (below) to find more clues. The purple trendline is our 20 day EMA. We haven’t been below this EMA since September of last year. So, the question for you all to answer for yourselves is this. Are you going to take the bet that we’ll now drop back below this line in the middle of our bull run or do you think that we’ll use this as support and remain above it? How you answer will probably determine how you are trading right now.
More data. Yesterday I mentioned that the month of July typically favors bulls with a 7.4% gain. We traders like those odds. Something else I noticed is that we never really had losses in July during a bull run. All July loss months appear to be in the start or middle of a bear market. All profit months occurred during a bull market. Will this time be different?
But the government is selling Mt. Gox distributions. Yes, yes, I know. And who is buying those distributions? Could it be Grayscale, Blackrock and other big institutions? Well, isn’t this a coincidence? Or is it? Seems more like a well-timed and orchestrated period to be distributing Mt. Gox reserves to me. But you be the judge.
