Bitcoin Clears $37,500 On Volume
After falling over 50% from around $65,000 to near $29,000 earlier this year, Bitcoin has been putting in some constructive action and may be setting up for another major move higher. As I mention in June, Bitcoin has been showing some very bullish divergence action. This trend has continued with Bitcoin's MACD continuing to show strength. I also like the fact that Bitcoin has hammered off $30,000 two times since mid-June, indicating support at this important level.
It's also encouraging to see Ethereum find support near the $1,800 level. I opened a position in Ethereum in late June, and my stop was not hit on the most recent decline, another bullish sign for crypto. I also added to my position in Ethereum today as it too has seen strong volume coming in. ETHE, like Bitcoin, is also showing some bullish divergence.
With its' 50-day moving average below its' 200-day moving average and Bitcoin still below its' 200-day moving average, there is most likely more back and forth action coming in the next few weeks. However, with such strong volume coming in as Bitcoin cleared $37,500, I felt the prudent decision was to start establishing a position here. If Bitcoin continues higher, I will add to my position as profits accumulate and I gain confirmation that Bitcoin has indeed bottomed. Due to the volatile nature of Bitcoin and cryptocurrencies on the whole, I prefer to build a position over multiple buy points rather than establishing a very large position all at once.
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Full Disclosure: I currently own Ethereum and Bitcoin.
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