Over the last day or so, the crypto industry in general has embarked on a tentative, yet seemingly unstoppable mini-rally, which now has BTC eyeing the $11,000 mark yet again. Unlike similar rallies in the past, this one managed to coax BCH along as well. How long is this going to last and how far is it going to take BTC on the tedious road to reclaiming some of the value it’s shed since its historic highs posted last year?
Last weekend saw the most popular cryptocurrency weather yet another sub-$10k dip. It eventually managed to defend the $9.3k low and with bids beginning to flow in, the bearish trend promptly reversed into a bullish one yet again. To showcase the healthy nature of this latest rally: it was indeed accompanied by a 28% increase in trading volumes, and something like that always comes in handy on the credibility front. Bitcoin is currently trading at around the $10.6k mark, but it did in fact do a sort of a scouting run towards $11k earlier.
According to data from some of the major exchanges, this latest rally was largely fuelled by BTC acquisitions made in USDT. The actual USD trading volumes have ticked upwards too though, by as much as 6.6%.
As far as technical analysis goes, several factors seem to be pointing in the direction of a more sustained bullish run this time around. On the daily chart, a bullish reversal pattern is taking shape. The main resistance level of this head and shoulders pattern is currently located at the $11.7k mark. A strong move past this resistance would indeed signal the start of a possible long-term bullish trend. Such a rally may eventually carry the price of BTC all the way to $17,400.
The bearish scenario would be triggered by a failure to break past the level set by the weekly 10-Day MA, and it would see the price of BTC drop all the way to $9.2k.
The strong trading volumes registered lately have pushed the stochastic oscillator close to overbought territory, and with its lines crossing in this unsavory realm, that bearish scenario may not be as far-fetched as it currently appears to be.
The oscillators are mostly neutral though, with the exception of the MACD Level and the Awesome Oscillator, which point to Buy. The Moving Averages are sending a much stronger signal in this regard: almost all of them point to Buy, with the exception of the Simple and Exponential moving averages, which buck this trend, and the Ichimoku Cloud base line, which apparently chose to sit this one out (Neutral).
What exactly are the fundamentals saying though? JP Morgan are not particularly thrilled about the prospects of having their own services go head-to-head with the crypto industry, but that is hardly surprising. What’s potentially much more significant, is the fact that the besieged Chinese exchange ecosystem has apparently found a way not only to survive, but to thrive under adversity.
According to Huobi officials, the crypto era is here and it cannot be stopped by rules and regulations. Huobi will simply comply and it will stay. It also fully expects that China will lift its current ban on crypto trading in the future.
With trading volumes up across the crypto-board, BCH has been reaping benefits off them too, its price currently hovering around the $1,280 mark. Indeed, BCH volumes have registered a 38% increase, outpacing even BTC in this regard. While this current mini-rally seems sustainable, the currency is still well short of its February high of $1,641, set on the 18th.