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Bitcoin Price Eyes Stronger Recovery Rally After Bounce to $8K

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  • Bitcoin has bounced back to $8,000, forming a double bottom breakout – a bullish price pattern – on the 4-hour chart.
  • The price breakout has opened the doors to $8,400. On the way higher, BTC may face resistance at $8,350.
  • A rally to $8,350, if any, could be short-lived if trading volumes remain low.
  • A break below $7,432 (June 4 low) would revive the case for a drop to the 50-day moving average at $6,915.

Bitcoin has recovered to $8,000 after defending key support for two consecutive days and may remain well bid over the weekend.

The leading cryptocurrency by market value is currently trading at $7,990 on Bitstamp, having hit a high of $8,020 earlier today.

BTC ran into offers around $7,900 in the early U.S. trading hours on Thursday and fell back to $7,450. However, much like Wednesday, the drop below the 4-hour chart’s 200-candle moving average (then located at $7,588) was short lived.

With the rise back to $8,000, the cryptocurrency has charted a bullish technical pattern on one of the short-duration charts. As a result, the recovery rally may continue, with prices rising to $8,400 over the weekend.

The weekly close (Sunday, as per UTC) will also be key. BTC witnessed solid two-way business last week before ending on a flat note, a sign of indecision among buyers. A short-term bearish reversal would be confirmed if prices close below last week’s low of $8,000 on Sunday.

4-hour chart

Bitcoin’s previous 4-hour candle closed out just above the resistance of $7,924, confirming a double-bottom breakout.

The pattern essentially represents a bearish-to-bullish trend change. So, it seems safe to say the pullback from the May 30 high of $9,097 has ended and the path of least resistance is now to the higher side.

It’s worth noting that a double-bottom breakout is usually followed by a move higher by roughly the length of the spread between the bottom and the neckline – in this case from $7,450 to $7,924, giving potential a rise of around $470.

So, with breakout already confirmed, BTC could climb toward $8,400 over the weekend. On the way higher, BTC may face resistance at $8,350 – the upper edge of the falling channel representing bearish lower highs and lower lows.

The rally, however, could be short lived if trading volumes remain anemic. As the above chart shows, trading volumes are locked in a downtrend despite the price recovery.

Daily chart

BTC created a long-tailed doji candle on Thursday amid falling volume bars – another sign the pullback may be over.

That said, the outlook would turn bullish only if prices see a high-volume UTC close above the 4-hour chart falling channel resistance, currently at $8,350. A channel breakout, if confirmed, would open the doors to $9,000.

On the downside, the June 4 low of $7,432 is the level to beat for the bears. A violation there would put the focus back on the bearish divergence of the RSI and the downward sloping 5- and 10-day MAs and allow for a deeper drop to the 50-day MA at $6,915.

The long-term outlook will remain bullish as long as prices hold above the May low of $5,263.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

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NYSE files a trademark application for trading NFTs

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The world’s largest stock exchange may be planning to bring business into the Metaverse.

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Traders say $4,000 Ethereum back on the cards ‘if’ this bullish chart pattern plays out

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Global tensions that could trigger a correction in markets abound, but traders say ETH’s current setup could result in a swift return to the $4,000 level.

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CryptoPunks community reacts to the ongoing copyright battle between V1 and V2

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Although the collection is no longer deemed authentic by Larva Labs, its creators alleged sold 210 ETH worth of CryptoPunks V1 when the wrapped versions first gained traction.

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Binance.US is under investigation from SEC over trading affiliates: Report

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Binance CEO Changpeng Zhao allegedly has connections to two market makers buying and selling crypto on Binance.US.

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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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