Monday's Market Minute: Bitcoin Breaks Above 50,000

Say what you want about Bitcoin as a product, but it’s great for volatility trading; /BTC futures have soared about 70% in a little more than a month. The 21-day Exponential Moving Average began below both the 63-EMA and 252-EMA during this same period, and has since risen above both of them to make the bullish “golden cross.”

Another example of the strength behind this upward move is the unusual situation of the Parabolic SAR making a bearish crossover on Aug. 18 and reverting to a bullish crossover the next day. Price is now pushing into the range of the previous lows from mid-year near 49,000 after holding at what has often been a support zone from about 28,000 to 31,000. Examining volume profile, price is in the thick of a node now, with other zones of heavy trading near 46,000 and 57,000, which can often result in stalled momentum. RSI also crossed into the overbought area during the overnight session, so watch for a rejection here as a warning sign and a break above the previous highs for potential further upside.

Image by MichaelWuensch from Pixabay