Bitcoin (BTCUSD) Technicals Point to a Rally
The DMI or Directional Movement Index, shows the direction of a price trend by charting the divergence between positive and negative marks. According to the indicator, Bitcoin is experiencing the largest divergence since the run-up from October to December of last year. The strength of this move is suggested by the ADI or Average Directional Index, a gauge that is nearing the pivotal 25 mark.
Recently, the digital coin has been climbing on speculation that the 1st cryptocurrency ETF will be introduced, surging almost 40% since the start of July to around 8,000.
Rumors on the Street are that a Bitcoin ETF could be approved by the US Securities and Exchange Commission (SEC) within weeks, it is still uncertain. That is good sign for investors who felt the pain of Bitcoin’s Fibo correction from record high of almost 20,000 in December.
The last time the positive and negative lines crossed on the DMI for Bitcoin was on 14 May, the cryptocurrency entered a negative trend and Bitcoin fell more than 33% by the end of June.
Currently, Bitcoin is trading at 7,920.8252,-322.91, or -3.92%, as of 5:29a BST, the market is open
Have a terrific weekend.