BTC/USD ANALYSIS

In the last two years, Bitcoin has always bounced sharply from the oversold levels on the RSI.

This streak was broken when the most recent pullback from $7,106 on May 29

could only rally to $7,755.61. Hence, traders should avoid initiating

long positions only on the basis of the RSI signal.

A number of analysts are advocating downtrend for the digital currency.

We, however, have maintained that it is likely to remain range bound

with the bottom being $6,075.04. The leading digital currency

has not broken below the intraday lows made on February 06,

and the moving averages have been crisscrossing each other frequently,

which is a proof that the trend is not down but range bound.

The best way to trade a range is to buy, when the price

is at the bottom of the range. However, we have introduced

an added filter to increase our factor of safety.

In 2018, a break out of the 20-day EMA has been a short-term trading opportunity.

If history repeats itself and the BTC/USD pair embarks upon a rally,

we want to buy it once it breaks out and sustains above the 20-day EMA.

The overhead resistances are $7,755.61, $8,566.4 and $8,888.

CHEERS