Rally for Summer Closing

Crypto Compass 51

“The most difficult thing is the decision to act, the rest is merely tenacity.” - Amelia Earhart

• Following news that a US court decided in favour of Grayscale against the SEC, the price of BTC began to rise steadily. As the Risk Signal began to decline with the awaited catalyst (as hinted in previous Uncharted), BTC gained momentum and cleared the $26.5k resistance zone. Eventually it tested the $28k resistance zone, with small correction back to $27.8k.

• BTC price has completed its consolidation phase and is forecasting a bullish week. Furthermore, the ETF approval deadline is this Friday, which may result in additional outstanding changes.

Figure 1: Bitcoin Risk Signal is a proprietary signal that gauges the amount of risk of a major drawdown in Bitcoin price.

• BTC's RSI increased from 26 on Monday to 66.83 at the time of writing. The rise in the RSI indicated a revival of buying pressure from market traders and investors. Even though the RSI was in full swing, the MACD only managed a bullish crossover, albeit one below the zero line.

• Although the RSI suggests positive signs for September, it could go below $25.5k if sales pressure continues. Investors may need to keep the buying pressure on. Given BTC's consistent price decline and sudden price surge, investors should look for signs of a turnaround.

Figure 2: BTC's price evolution within the past month.