The past two days or so have provided an interesting change in price action. Sentiment has changed slightly, at least for now. A bit of bullish bitcoin price movement has been in the works lately, breaking out of the $3k range, as we currently see $4290 at press time on Blockmodo.
Overall outlook still seems to have a bearish tone, although several bullish anouncements have brightened people’s opinions a bit.
Recent Bullish Bitcoin Price News
Nasdaq VanEck Partnership
CNBC reported yesterday on Nasdaq’s partnership with VanEck. The two announced their intent to create a Bitcoin futures trading product, with possible launch in 2019.
This is notable news. Nasdaq is the second biggest stock exchange in the world. VanEck has also made headlines for their repeated Bitcoin ETF applications.
In addition, it seems positive that these entities are still interested, even after such a bearish year (especially prices lately)
Amazon Managed Blockchain
Amazon announced blockchain incorporation yesterday.
“Amazon Managed Blockchain is a fully managed service that makes it easy to create and manage scalable blockchain networks using the popular open source frameworks Hyperledger Fabric and Ethereum*”, according to aws.amazon.com.
This is also big news as Amazon is a dominant force in the world. Amazon was reported as “the most popular company in America”, according to an article by marketwatch.com at the end of 2014.
CLS/IBM Blockchain-Based Payment Launch
Yesterday also saw IBM and CLS launch their blockchain-based payment system, according to a report from CoinDesk. Goldman Sachs and Morgan Stanley will utilize “CLSNet”, with other global participants coming on board soon.
Having such big names involved in blockchain seems bullish for the space as a whole, even though not directly correlated to Bitcoin itself.
Price action lately has also been much more positive, as CoinDesk reported yesterday as Bitcoin’s “biggest single-day gain in seven months”.
Google trends also shows Bitcoin search interest to be the highest it’s been since April.
Although the charts could indicate resistance ahead, with possible drop back down below $4k.
(Chart lines, patterns, conclusions, levels, prices, etc., are very subjective, based on opinion. Many times they are not exact, but simply estimates of ranges based on bias, opinion, etc. Proceed at your own risk, with caution.)
The weekly Bitcoin chart for Bitfinex has not changed too much. Although the current candle could be shaping up to be a spinning top candle. When seen at the bottom or top of a big move, Spinning top candles can sometimes indicate an incoming reversal.
On the daily Bitmex chart, Bitcoin was unable to close above the $4393 price range, which is the next area of important resistance. Price lies between two white support/resistance lines, indicating levels of $4668 resistance and $4049 support.
Price has also not contacted the 21 daily EMA in over a week.
The hourly chart seems to possibly show incoming downward price action. The red trendline will intersect the mentioned $4393 resistance, possibly requiring decision.
Although RSI shows bullish sentiment above the mid zone (green line).
Bearish Stoch RSI divergance with price is also evident (two yellow lines). Babypips.com gives a great visual on bearsih price divergance, potentially leading to downward price action.
If the bitcoin price falls to the $4049 support and fails, price may see more trading in the $3k zone.
*This article includes opinions from the author and is not in any way financial advice. Writing about price levels is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever. Proceed only at your own risk.
*CryptoInsider is sponsored by Blockmodo. As part of our arrangement, we may occasionally link to them and quote them when appropriate. This is done at the discretion of CI staff and CI sponsors have no say in any editorial decisions made by CI.