Bitcoin could make a big upside move soon as technicals indicate strong support for BTCUSD

Technical indicators show that Bitcoin's downside is heavily protected. In all probability, Bitcoin could likely move up to $9,600 next week.

US President’s Donald Trump’s retaliatory tactics on China are brewing up yet another storm for the stock markets. Japan and Germany have already entered a phase of recession.

The past few months have shown the importance of diversification in investing. Those who put all their investments in stocks would have lost around 35% of the capital’s value. Investors who opted for a specific portion of the portfolio value for investments in Bitcoin would somewhat be shielded.

 

BTC looks steady after bouncing off crucial support

Bitcoin started dropping on May 20 after there were rumors about the movement of 50 Bitcoins from an eleven-year-old wallet. The drop continued till May 22. Since then, BTCUSD bounced off the crucial support region and bounced back.

BTC is currently trading around $9,200. Bitcoins rise from the lows is much better compared to previous ones. It is because it is a steady yet gradual rise. 

 

Technical indicators that point to big push soon for Bitcoin

Source: TradingView.com

If we look at the hourly-chart for BTCUSD, we can see moving in an uptrend. Key indicators that suggest Bitcoin is likely to push higher are:

  1. The Relative Strength Index or RSI has turned bullish. It took a sharp turn from the previous decline and is now rising towards the overbought territory. It indicates the increasing dominance of buyers.
  2. The trendline will soon be broken. And when that happens, the chances of Bitcoin moving up seems higher than it falling.
  3. In case Bitcoin falls below the trendline, there will two crucial support zones. The first is the support at $8,297, and next is the support region from which BTC bounced back earlier.
  4. The 50-period Simple Moving Average would act as another support.

The significant movement in Bitcoin will likely occur after the stock markets open on Monday. The chances of BTC crossing past $9,600 by the beginning of next week cannot be ignored!

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