Bitcoin bulls are back — that’s right. In the past few hours, the cryptocurrency has been regaining its upward momentum once again, finally showing some bullish price action following the Friday close of the CME’s August BTC futures contracts.
This move higher has brought Bitcoin to $10,400, which is some 12% higher than the $9,300 bottom seen last week. While it isn’t clear how long this upswing will hold, bulls are currently in control, managing to keep BTC’s price in five digits.
Bitcoin Move Correlated With Chinese Yuan… Again
What’s weird about this move is that it correlated with price action in the Chinese Yuan-to-U.S. Dollar pair yet again, accentuating that Bitcoin is being influenced by macroeconomic narratives.
As pointed out by analyst CL in a recent tweet, the two pairs rose in tandem for the umpteenth time. Just look at the image below, which shows that the devaluations in the Yuan is literally being tracked by Bitcoin.
When it happens, once or twice, it may be luck. But I don’t think this is luck anymore. pic.twitter.com/VXsgh5bECB
— CL (@CL207) September 2, 2019
With the trade war between the U.S. and China getting worse — tariffs continue to be added from both sides — the Yuan may continue to slide, and may bring up the price of the leading cryptocurrency with it. Crazy, right?
Related Reading: Fresh Bitcoin Uptrend May Start in September, But Drop to $7,000 Could Precede Bull Run
An Expected Move
While this outlet and many on Twitter have been mentioning overly bearish analysis, at least two prominent analysts charted this move in Bitcoin.
Filb Filb, a popular trader, wrote earlier this week that the four-hour on-balance volume (OBV) indicator was trending higher, despite a drawn-out downtrend in the price of BTC. This bullish divergence was purportedly the first on Bitcoin’s four-hour chart since the $3,350 price bottom seen in December.
Also, the negative peaks in the four-hour Moving Average Convergence Divergence (MACD) have become increasingly higher, implying that bears are losing steam. He was correct — at least so far.
— fil₿fil₿ (@filbfilb) September 2, 2019
Then there’s Raoul Pal, a former Goldman Sachs executive, who recently wrote that now is the right time to board the Bitcoin rocket ship.
I’ve never had this many bearish comments from the bitcoin community. Feels likes it’s going to go up without a lot of people fully on board… https://t.co/SjZrNaWwb7
— Raoul Pal (@RaoulGMI) September 2, 2019
Featured Image from Shutterstock
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Author: Nick Chong