Summary:
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Some technical tools suggest Bitcoin could see a bull run in the nearest future
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Indian central bank denies it is setting up a uni to research cryptocurrencies
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Bitcoin approaches the upper bound of the triangle pattern
The cryptocurrency market has seen a bounce in recent hours. The bounce has coincided with pivotal technical levels in some cases e.g. Dash or Bitcoin. What’s more, in case the most famous cryptocurrency we could be just ahead of another bull run such conclusions can be drawn from a technical analysis conducted by Bloomberg. It wrote “based on an analysis of RIG tren lines, a leading technical indicator that is a combination of the RSI and momentum studies, the momentum gauge crossed the relative strength index (RSI) gauge, which could be indicating a positive price movement is on the horizon.” The chart below presents this analysis. Based on the past Bitcoin performance one may notice that the price rose three times when the two lines crossed.
Some technical tools indicate that Bitcoin could see a bull run in the nearest future. Source: Bloomberg
For example, when the two lines crossed in mid-August, the cryptocurrency saw a 21% increase over the next three weeks. Some analysts say that the Bitcoin price has been recently held down on the back of the SEC’s decisions to decline to list nine crypto funds. What’s more, some attention from Bitcoin has been also stolen by the rise seen in marijuana stocks. From a technical standpoint one Bitcoin is again approaching the key technical level at around $6800. If the price is going to stay within the pattern one may suppose it to reverse toward its lower limit and then again to bounce back. Either way, we are getting closer to an end of this pattern which implies that a possible breakout in either down or up could take place as soon as next week.
The Bitcoin price has just approached its critical short-term resistance. Source: xStation5
Over the past month we were offered some unconfirmed reports that the Reserve Bank of India was going to set up a cryptocurrency research unit. The unit was also to handle blockchain in general as well as artificial intelligence. Nevertheless, the central bank has reportedly denied these reports. Of course, this information is not also the official one hence. What’s more, setting up this unit would seem to be in line with the latest annual RBI’s report published at the end of August where the central bank confirmed that it is “keeping a close watch on cryptocurrency”.
As we pointed out yesterday Dash managed to rebound from its short-term trend line. If the move turns out to be more sustained, it could take the price up to $218. Source: xStation5
