Bitcoin Soars As Crypto’s Utility Continues To Increase: What Does the Chart Say Comes Next?
Bitcoin (CRYPTO: BTC) gained further utility on Thursday when Twitter Inc (NYSE: TWTR) announced its tipping feature will be available to all users and will offer an option for paying and receiving tips in the apex cryptocurrency. The option will be available on iOS soon and to Android users over the following few weeks.
The Bitcoin Chart: Following the announcement, Bitcoin rose about 2.5% in the 45 minutes between 1 p.m. and 1:45 p.m. ET. The crypto then began to consolidate the move on lower timeframes.
By mid-afternoon Bitcoin was trying to gain support of the eight-day exponential moving average (EMA) on the daily chart. If Bitcoin can regain the level as support, it will negate the bear flag pattern created between Sept. 19 and Thursday.
Bitcoin was in the process of printing a bullish Marubozu candlestick, which indicates higher prices may come on Friday and into the weekend. Technical traders may have seen the reversal to the upside setting up on Sept. 21 when Bitcoin’s relative strength index reached near overbought territory at the 35% level.
Bitcoin is trading below both the eight-day and 21-day EMAs with the eight-day trending below the 21-day, which is bearish for the short term. The crypto is also trading slightly below the 200-day simple moving average (SMA), which indicates overall sentiment is bearish. If Bitcoin trades up toward the $46,700 level over the coming days, it will cause the eight-day EMA to cross back above the 21-day and 200-day SMA which would be bullish.
- Bulls want to see continued high bullish volume to drive Bitcoin up above its closest resistance level at $44,850 and then for a trend change with higher lows and lower highs to develop when the crypto eventually consolidates.
- Bears want to see big bearish volume keep the crypto below the eight-day EMA and for selling pressure to then drop the coin back toward the $42,233 level. If Bitcoin loses the area as support, it could fall back down to the $39,600 mark.