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Bitcoin Price Analysis: Two Bullish Indicators Are Flashing at $8K

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Bitcoin price analysis shows that bullish momentum is building as BTC reclaims the psychological $8K level. But is a new YTD-high next?


Bitcoin Price Analysis: Daily Chart

Bitcoin’s price continues to track nicely inside an ascending triangle pattern, after bulls successfully springboarded off the $7,500 level yesterday. Now, their next challenge is to close above the psychological $8K level which currently stands between them and the YTD-high at $8,380. Can buyers keep the momentum going? Let’s take a look.

On the daily BTC/USD chart we can see the ascending triangle that we’ve been looking at this week, is continuing to form well after BTC made a strong recovery off the uptrending pattern support yesterday.

Right now, the $8,000 level appears to creating some temporary friction in the uptrend as selling pressure most likely from short-term traders and auto-trading bot orders slow Bitcoin’s ascent.

Bearish signals on the MACD indicator have continued to get worse since yesterday’s analysis, despite Bitcoin’s price jumping 5.24% in the last 24 hours. Selling volume on the histogram is growing and the 12-MA has yet to show any sign of converging above the 26-MA.

We should note however, that the MACD is a lagging indicator so convergence/ divergence signals often trail behind the current price activity. If bulls are able to close above $8K today, then we should expect to see a bullish 12/26 MA convergence appear during the early hours tomorrow.

Should BTC end the day beneath $8,000 however, then we could see another bearish breakout take over, which pushes Bitcoin towards the uptrending support below, somewhere near the $7,600 mark.

Looking at the RSI we can see that this indicator also remains bearish, as momentum shows a marked decline along a clear support (yellow line) despite Bitcoin’s price making higher lows. From this, we can infer that buying momentum over this time period is weak and could result in a trend reversal unless new support arrives.

All eyes will be on the $8,000 level during today’s close, and which side of it Bitcoin ends up on.

4-Hour Chart

On the 4-Hour BTC/USD chart we can see an entirely different picture. On here, it appears that the price action is already breaking out of the bullish pennant pattern that we identified earlier in the week.

In the last 4-hours it appears that BTC buyers have succeeded in breaching the 0.786 fibonacci resistance at $7,917, and are en route to testing the first minor resistance at $8,060.

Looking at the RSI, we can see that the indicator line has just started to break out of consolidation, and peak over the 58% mark for the first time this week. This tells us that strong momentum has picked up behind Bitcoin in the last 4-hour window.

On the MACD indicator, we can also see some other promising bullish signals: The 12-MA has now converged above the 26-MA, both moving averages have broken above the signal line and buying volume is increasing on the histogram.

So why are the daily chart signals so different to the 4-Hour signals? Well, don’t forget that Bitcoin recently flash crashed from $8,380 to as low as $6,200 (On Bitstamp). That major drop in price will have likely thrown a lot of the 1-Day indicators off and has made it difficult to plot BTC’s next movements over that time-period.

On the 4-Hour chart, the indicators track the price action much more closely and give traders a more concise idea of Bitcoin’s price movements. Over this time period, traders are able to see smaller changes in momentum much more clearly which is why we are seeing bullish signals now appear on the MACD and RSI but not on the daily chart yet.  

Overall, we could expect to see Bitcoin test the $8,100 and $8,150 level within the next few candles if momentum continues to improve. From there, we could even see bulls test the ascending triangle pattern resistance at $8,200 if weekend trading continues to be as volatile as it has been over the last few weeks.

Trade Bitcoin (BTC), Litecoin (LTC) and other cryptocurrencies on online Bitcoin forex broker platform evolve.markets.

[Disclaimer: The views and opinions of the writer should not be misconstrued as financial advice.]


Images courtesy of Shutterstock, Tradingview.com

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Boost Insurance unveils product covering against crypto theft from qualified custodians

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Boost Insurance, an insurance infrastructure-as-a-service platform, alongside go-to-market partner, Breach Insurance, a company that provides insurance technology and regulated insurance products for the cryptocurrency market, today announced the launch of Crypto Shield, an insurance product for cryptocurrency available to retail wallet holders.

Crypto Shield covers the theft of cryptocurrency while in the custody of a qualified custodian.

The Crypto Shield product allows individuals to purchase protection for their crypto wallets held by select custodians. In the case that the custodian is breached or suffers a social engineering attack resulting in lost assets, individuals insured under Crypto Shield can be reimbursed for the value of their policy.

Boost + Breach

While there is some commercial insurance available to cryptocurrency institutions, Breach envisioned Crypto Shield as a solution to the protection gap that currently exists for individuals holding crypto, securing a partnership with Boost to assist in bringing the Crypto Shield product to life.

Boost’s insurance infrastructure-as-a-service packages the necessary operational, technological, compliance, and capital requirements for new insurance programs into a white-label solution, enabling insurtechs like Breach to swiftly launch new lines of business.

“Boost’s deep expertise and insurance infrastructure-as-a-service platform, and Relm’s industry-leading crypto reinsurance capabilities, have positioned Breach to bring a highly complex insurance product to the market in a beautifully delivered customer experience.”
– Eyhab Aejaz, Co-Founder & CEO at Breach

To deliver that product in a seamless experience, Boost and Breach’s platforms connect via API, allowing Boost’s policy administration system to deliver back-end management for the Crypto Shield product. Breach’s customers are then able to purchase and manage every part of their policy and claims process, all from within Breach’s proprietary crypto insurance platform.

“With Boost’s infrastructure-as-a-service platform, companies like Breach can launch and deliver innovative new insurance offerings, at a fraction of the time and cost required to build a full-stack insurance program from scratch.”
– Alex Maffeo, CEO & Founder of Boost

In addition to powering the new product, Boost and Breach partnered to source and secure the necessary reinsurance backing from industry expert Relm Insurance Ltd. (Relm), underwritten by Trisura Specialty Insurance Company. Operating out of Bermuda, Relm is a capacity provider to the crypto sector with a track record of insuring companies across the ecosystem. Relm has recently been awarded an ‘A Exceptional’ Financial Stability Rating (FSR) by Demotech.

“Relm’s partnership with Boost and Breach to reinsure the US’s first cryptocurrency insurance product for retail wallet holders is a milestone in supporting the development of crypto and blockchain technologies.”
– Joe Ziolkowski, CEO at Relm

The post Boost Insurance unveils product covering against crypto theft from qualified custodians appeared first on CryptoNinjas.

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