We published bullish sentiments on 10th Aug showing that the leading crypto currency will soon have its footprints left near 50,000 benchmark. This upthrust to BTC was provided by the CoinBase quarterly data release which witnessed four days of sharply rising prices in line with Bitcoin. Coinbase’s second quarter results missed out on Bitcoin’s renewed strength of the past few weeks. The pioneer cryptocurrency, which accounted for about 44% of Coinbase’s revenue in 2020, has experienced a 59% run-up since July 20. Bitcoin price has emerged from the recent consolidation around the 50% retracement of the April-July correction at 46,849 and the 200-day simple moving average (SMA) at 45719, reclaiming the 2020 ascending trend line that had become influential on price since August 7. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Today’s breakout, if it holds, has the potential to stretch the Bitcoin price rally to the 78.6% retracement of the April-June correction at 57,173 in the coming days before striking formidable resistance framed by the February, March, April and May highs. At that level, BTC investors can anticipate a substantive pullback.

A bearish BTC development that may interrupt the Bitcoin price journey higher is the emerging bearish momentum divergence on the daily Relative Strength Index (RSI). A bearish momentum divergence occurs when the RSI does not confirm new price highs with a new high. Even if the new Bitcoin price breakout fails to gain traction above the 2020 ascending trend line, it is well supported by the earlier trifecta of support between $41,500 and $43,000, which includes the January high, the February low, the June high, and the 38.2% retracement level. Only a daily close below $41,500 would alter the bullish BTC narrative.

BTCUSD

Aug 21 2021