Today was bullish for cryptocurrencies, as stock markets were lower and the U.S. dollar saw broad declines. Bitcoin is trading higher by 1.08%, making it the worst major performer on the day. Ethereum was today’s best performer, with gains of 3.45%, while Ripple also traded higher on the session with gains of 1.78%.
Today’s Top Crypto Performances
The trend in cryptocurrencies remained higher on the day, and this is in-line with the longer-term outlook for the asset class. Bitcoin under performed the major cryptocurrencies today, and technical analysis readings suggest that this may not continue tomorrow.
Short-term Chart View: Bitcoin / U.S. Dollar
On the short-term time frames, Bitcoin is showing bullish readings. Against the U.S. dollar, the price of Bitcoin has moved higher over the last 24 hours. Market prices are now trading at $7,440.10 against the greenback. Bitcoin is trading at the upper end of its recent trading range but the technical indicator readings have turned bearish. The RSI indicator is falling rapidly, which indicates a decline in momentum. If we see a break of the trendline on the 30-minute charts, traders will likely consider moving into new short positions.
Long-term Chart View: Bitcoin / U.S. Dollar
On the long-term time frames, the picture is much more bearish. Bitcoin has been caught in a downtrend since May 4, 2018. Bitcoin is trading at the lower end of its long-term trading range, and this suggests that contrarian crypto traders might take advantage of these lower levels and try pushing prices higher. Long-term technical indicator readings have turned neutral. The RSI indicator is trading near the midpoint at 50, which indicates stalling momentum. If we see a break of the downtrend line on the 3-hour charts, traders will likely consider moving into new long positions.
Bitcoin Trader’s Outlook
The recent market activity in Bitcoin suggests a mixed outlook for the market leading cryptocurrency. Short-term indicators are bearish, and a loss of trendline support could force a retest of the previous lows near $7,050. Long-term indicators are more bullish, and a break of the prevailing downtrend line could inspire bullish trading activity for Bitcoin traders taking long-term positions. The differences here help to highlight the reasons why alternating chart views are critically important, and the price levels above should define much of the trading activity over the next 24 hours. Markets will continue watching for clues in the stock market and in geopolitical tensions to help determine the next price direction in Bitcoin.