Bitcoin soared by 3.8% on Sunday. Most of the gain came within a 15-minute window with BTCUSD jumping from $27,233 to $27,880. The cryptocurrency is now trading near $28,290. There does not seem to be an outright catalyst for the move, with many market participants referring to "Uptober."
Uptober is crypto vernacular for October as a bullish month for cryptocurrencies. However, other participants suggest that "someone knows something."
The crypto market is also optimistic regarding upcoming approval of crypto backed exchange traded funds (ETFs), which are likely to be introduced in January next year.
Weekly Technical Analysis
Bitcoin's green 5-week EMA is looking to cross above its orange 10-week EMA (red circle). If successful, this will be a bullish development. Moreover, the weekly RSI has popped above 50 (green rectangle). This is the bullish side of the indicator. The longer it maintains on this side, the greater the chance for the bullish cross of the EMAs.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.