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Bitcoin and crypto are getting some relief over the last few days. Is the current rally going to break higher? Or will Bitcoin face another rejection of the 200-week moving average?
With a backdrop of increasing bond yields continuing to provide much concern in U.S. and European markets, the crypto sector is seeing some welcome price relief after generally downwards and sideways action since mid-July this year.
A successful breakout this time?
Bitcoin rose once more to briefly tap the 200-week moving average - something it has done fairly regularly over the past month. In Bitcoin’s favour this time, the Stochastic momentum indicators for the higher time frames of the day, week, and 2-week, have crossed to the upside, perhaps predicting a successful breakthrough this time.
In addition, even on the very high time frame of the monthly there is a possibility of a cross back to the upside, although this would not be confirmed until the end of October.
Therefore, looking out towards the end of this year there is potentially some positive price action to come from Bitcoin. A possible rise to touch the top of its upward-sloping channel could take the number one cryptocurrency well into the $30,000 plus price range.
A much longer bull market
Be that as it may, it would be good for investors to consider that this bull market is likely to take much longer than previous ones, and so there is perhaps plenty of time to take a position in Bitcoin as it continues to build price structure before eventually moving higher.
According to chart analyst Steve Courtney from Crypto Crew University, the current price action for Bitcoin is absolutely in line with what he calls “phase one” of its new bull market.
He is of the opinion that Bitcoin can certainly go back to test its base at around $18,000 and still remain completely healthy as far as price structure goes.
He doesn’t say this is a certainty, but just reminds his viewers and subscribers that this is a possibility and that if it happened it should be viewed as a gift for those looking to enter or increase a position.
