This week's pivot
Bitcoin showed signs that it is no longer trapped inside a narrow range and has made its exit from sideways trading. Next week will likely take it to higher pricing. When it broke out of its price range of $5,700 to $6,700 yesterday when BTC futures had their first close above $6,700 since March 12th. The high on March 12th was just at $8,000 which is also were I believe BTC is headed next week.
To regain that price point is likely going to bring back fickle investors which in turn spark up another round of fomo buying in the futures. The price point of 8k is also very key from a technical standpoint as well. Seeing as the most magical number of all “.618”, is the retracement level we have marked at $7,970. So, achieving a $8,000 price point next week would be extremely bullish for Bitcoin and it is looking very possible at this point.
If you read my articles you probably know that I was looking for sideways to downside action in the near term as recent as Wednesday. So, what exactly changed to justify such a change in sentiment?
On the fundamental side we had Bitcoin truly appearing to act as a safe haven on Thursday as it rose 10% alongside a rise in gold, silver and the U.S dollar. On the technical front Thursday was the first occurrence of BTC trading above the 21-day exponential moving average since March 12th. The 21-day E.M.A formed resistance yesterday and today as prices on both occasions were un able to close above it.
Weekly charts of CME futures reveal that we have had three consecutive higher weeks not only from the start to end of each week was higher but each week closed as well as tested higher prices each time. This is illustrated by the three green candles having higher bodies and upper wicks than the previous.