More Buyers than Sellers has Bitcoin Surging, But it could be a Bull Trap
- More buy pressure than sell pressure driving the price up
- Good News: Death cross leads to a golden cross
- Could this be a fake breakout?
We are back above $10,000. Bitcoin has made a good start of August as it surges over 5 percent to $10,500, seeing an uptick in the daily trading volume at $1.21 billion as well.
More Buy Pressure than Sell Pressure Driving the Price Up
This upswing came on the back of Bitcoin experiencing the first rate cut by the Federal Reserve in its history. An expected 0.25% rate cut was made by the Federal Reserve amidst the global fears of an economic slowdown.
Though this left Wall Street and President Donald Trump unimpressed, Bitcoin did see some uptrend that took it back to five figures.
Another reason behind this could be the regulators and lawmakers realizing that they just can’t ban Bitcoin. Additionally, China is also trying to educate its citizens about Bitcoin via an infographic.
To summarize it all, there’s only one reason behind the spike in Bitcoin price, “more buyers than sellers,” as put by Joe McCann, analyst and NodeSource founder.
Good News: Death cross leads to a golden cross
About this hike that BTC price took has investor and trader Josh Rager projecting August to be a “good month.”
“BTC… finally some nice follow through for Bitcoin. A close above previous 4hr resistance is a nice sign. The good news about the death cross is that it leads to a golden cross as the 50MA is already starting to turn up. August could turn out to be a good month for price, IMO.”
A death cross is a technical pattern that indicates the potential for a major selloff. It appears on a chart when the short term moving average of a stock crosses below its long-term moving average.
Golden cross, on the other hand, is a candlestick pattern that is a bullish signal where a relatively short term moving average crosses above a long term moving average. This indicates the potential for a major rally.
Analyst Magic Poop Cannon is also feeling bullish as three-day golden cross pattern occurs on the chart.
“BTC is holding the 50 EMA like a boss right now, while a three day golden cross is happening at the same moment. Also, the daily MACD is crossing over bullish.”
Could this be a Fake Breakout?
Up until recently, analysts and traders have been calling out for $8,500 and even lower target for the flagship cryptocurrency. However, as BTC makes progress on the upside, bears are flipping bullish.
This has analyst The Cryomist wondering, “Am I the only bear left?,” as she feels this could be a bull trap.
“We are peaking out of larger falling wedge but within a rising wedge formation which makes me feel this is a trap. We've broke down the RSI wedge as mentioned yesterday. 10280 is the apex of this wedge.”
In a matter of a few days, Bitcoin went from “looking shit to looking decent” which is now approaching resistance at $10,300-$10,500 area.
If Bitcoin breaks above this region, analyst DonAlt says we would make a quick move to $11,500 but if it gets rejected, we can very well visit the $8,500 target.
Bitcoin’s price is $49,048.44 BTC/USD exchange rate today. The real-time BTC market cap of $916.67 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $37.95 Billion and live coin value change of BTC -9.94 in the last 24 hours.