Bitcoin rally seems weak

Bitcoin has crept back up above 1202 on Bitstamp, but this is hardly the bitcoin ‘smashing all time highs’ which I called for when the previous high was broken. Note too although bitcoin did rise above an ounce of gold for a while, it didn’t last and bitcoin is still sitting below it. Coincidence or not but bitcoin is struggling to overtake gold in convincing way.

Although the dreaded fork of segwit and bitcoin unlimited seems to have died away (for now). Bitcoin still lacks direction. Nothing has resolved that I see and the next wave of FUD will again be a big headwind to the price taking off.

As I elaborated in my last post I dislike both those scaling options. I would get more confidence in bitcoin if the core devs would forget segwit which has been shown to be too unpopular to get consensus and instead concentrate on what is important. The size of the block chain growing exponentially. If they can figure out a way to distribute pieces of the blockchain to individual nodes instead of the whole thing I will be a lot happier with the tech.

Anyway heres a bitstamp chart, 1 day candles, log price scale.

On bullish side, price rising has taken bitcoin to the top half of my channel. Bitcoin is still comfortably within the bull trend I have been looking at for some time. Slight cause for caution though is that there appears to be a bearish divergence on the RSI. Although last two peaks were higher in price RSI shows momentum fading.

As always these thoughts not advice just sharing whats rattling around in my head.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s