Bitcoin Price has witnessed a major rally over the past couple of days of September and through the start of the month. An increase of almost 20% from the 29th of September lowest to the weekend high has created significant interest and anticipation of an upcoming bullish breakout for Bitcoin
Bitcoin value, despite the extreme buying pressure, has remained inside the Cloud. Since returning to the Cloud on the 20th of September , the price movement has shown another instance of the volatility and frustration and the instrument is facing within the Cloud. Sellers were in total control until they faced the $40,000 buying limit and the buyers are now feeling the same pressure.
There are two remaining conditions for Bitcoin’s current chimoku chart that could ensure that a new upward trend is on the way to record-setting new highs. The first is that the Bitcoin value must rise above Cloud. The second requirement is that it is necessary that the Chikou Span must be above the Candlesticks and be in an open area’ (a condition where it does not interfere with any candlesticks in the next five to ten days). Technically speaking, both conditions are satisfied when Bitcoin would close at $48,160. However it is unlikely that this Chikou Span would intercept the candles in the next the next six days. However the price above $49,150 will place the price higher than that of the Cloud and the latest high on the swing as well as move the Chikou Span to ‘open space.’
But, bulls must be aware of the conditions that favor the short-side in the marketplace. The first is that there is a’sneaky type of concealed bearish divergence that exists between Bitcoin value and Composite Index. In addition, the location in the Optex Bands are near the extremes and currently shows some slight slopes towards the south. The Relative Strength Index was shifted into bear market conditions with the RSI decreasing against the first overbought situation at 55. If you take into account that the Bitcoin value has stagnant at the top in the Cloud for four days, investors are advised to be cautious as returning to the range of $30,000 remains a possibility.