A double-digit technical correction seen in the last 36 hours notwithstanding, Bitcoin is still on track to close with gains for the fifth straight month as a matter of fact.
Prices could come again to the recent highs over the weekend as the hourly chart shows the pullback has ended.
Actually, prices could rise further in the second half of this year considering a reward due in May 2020 and increase private and public participation.
looking at the break below which was experienced during the May 30 high of $9,097 would invalidate the bullish outlook as per the daily chart.
Bitcoin cryptocurrency is still on track to end in the green for the fifth consecutive month despite the price having witnessed a double-digit correction in the last 36 hours.
On Bitstamp yesterday, the price of a single bitcoin fell to $10,300 retracing 55 percent of the rally from the June 4 low of $7,432 to the June 26 high of $13,880.
It’s down on 15 percent from recent highs as its being traded on $11,800 a few hours ago as at the time of writing. However, despite the correction, the top cryptocurrency is still on the track with up to 38 percent from its June 1 opening price of $8,546.
From the look of things, it is expected that With the monthly close just two days away, BTC is likely to end June on a positive note since the technical studies continue reporting bullish conditions.
Since August 2017, this will be the longest five months winning run as seen in the chart below.
With flashing green for the fifth month straight in February, March, April, and May having rallied by 11, 8, 28, and 62 percent respectively.
A similar winning streak was observed In five months to August 2017 similarly situation of a winning streak was observed.
The cryptocurrency appears to be on track to log double-digit price gains for the third consecutive month, the first such run was since the final quarter of 2017.
As discussed earlier this week, the popular cryptocurrency-Bitcoin is on the verge of posting a record of second-quarter gain of over 188%.
The cryptocurrency is set to undertake a mining reward halving sometime in May 2020 as the stellar run could be extended in the second half of this year.
Speaking there is this belief by some observers including Anthony Popliano, co-founder and partner of Morgan Creek Digital, that the rally seen in the first half was backed by institutional money and the inflows may rise further in the future, bitcoin will then have a good run.
While talking to reporters, Bhargava compared the 2017 rally as almost entirely driven by retail money, while the one of this year has been more balanced as seen with an approximately 80:20 ratio of retail to institutional money as against previously backed by retail money in 2017.
Bhargava, however, demonstrated how low trading volumes are a cause for concern and emphasized on the need for increased adoption by large asset managers for further price appreciations.
Aside from this conception, there seems to be in the market that Facebook’s Libra cryptocurrency will end up boosting bitcoin’s appeal as an anti-establishment asset and thus it’s adoption rate which definitely will high up.
In all, the macros seem aligned in favor of the continuation of the price rise in the second half of this year. The long-term technical charts are also still flashing bullish signals.
Meanwhile, the intraday charts show the pullback has ended and recent highs could come into play over the weekend.
Hourly and daily charts
The hourly chart (above left) shows the invalidating bearish divergence (lower-highs pattern) established earlier this week as the relative strength index (RSI) breached the descending trendline;
Furthermore, BTC could rise back to levels above $13,000 over the weekend as a result of the chart which is reporting a bearish channel breakout.
The cryptocurrency repeatedly bounced from the bullish (ascending) 10-day moving average on the daily chart (above right), This is confirming the bullish case.
As long as the price continues to stand above the May 30 high of $9,097, the outlook on that time frame will remain bullish.
Weekly and monthly charts
By next month prices may come under pressures as the weekly RSI (above left) is reporting extreme overbought conditions, with the highest reading since January 2018.
A channel breakout and a bullish crossover on the 5th and 10th month MAs on the monthly chart (above right) may have opened the doors for a rally to record highs above $20,000 since therefore, any price dip, however, will likely be short-lived.
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