Tuesday's Market Minute: Bitcoin Blasts Off

Bitcoin futures surged more than 16% yesterday on high volume, with intraday prices ranging from below 30,000 to above 40,000 within only four trading days. Even in light of what we’ve grown to expect from the cryptocurrency product, this is still the type of impressive volatility that potentially makes for some major opportunities. The /BTC contract went from trading below its 50-Day Simple Moving Average, 200-SMA, 21-Day Exponential Moving Average, and 252-EMA to closing above them all within this same four-day range.

This rapid, strong close above these important moving averages would typically be regarded as bullish, with the 64-EMA near 38,306 as the next source of possible resistance. As for other technical developments, /BTC’s monster close yesterday triggered a bullish PSAR crossover as well as a close above the upper Bollinger Band, both of which are viewed as bullish, as well as a MACD that shows bullish momentum heating up. Despite the recent action, Bitcoin still needs to make a convincing close above its mid-May highs near 40,000 and its 64-EMA to continue its uptrend, otherwise, watch for another test of the range that’s forming with 30,000 as the lower end.

Image by MichaelWuensch from Pixabay