Bitcoin May 29

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Market data is provided by the HitBTC exchange.

The chief commercial officer of cryptocurrency payments processor BitPay believes that Bitcoin will only rise higher, led by business interest and real use cases for cryptocurrencies around the world. Contrary to this opinion, a report by the United States think tank, the Congressional Research Service, claims that cryptocurrencies are being used for investment purposes and not as money.

Jens Weidmann, president of Germany’s central bankand chairman of the board of the Bank for International Settlements warned that adoption of digital currencies could destabilize the financial system during a crisis.

A recent survey shows that 94% of the 150 university endowments had some kind of exposure in crypto-related projects. Another interesting observation was that 49% of the respondents said that allocation to crypto investments by endowments, in general, is likely to increase over the next 12 months. But how should individual traders approach the crypto markets now? Let us analyze the charts and find out.

** BTC/USD
Bitcoin (BTC) dipped to the breakout level of $8,496.53 and held it. This is a bullish sign as it shows buying on every minor dip. Now, the bulls will attempt to propel the cryptocurrency above the minor resistance at $8,904.92. If successful, a rally to $10,000 is probable. The moving averages are trending up and the RSI is in the overbought zone. This shows that the bulls are in command. The short-term traders can attempt a quick trade by buying at $8,950 with a stop loss of $8,400. However, as the risk is high, use only 30% of the usual position size. Also, keep trailing the stops higher as the price moves up as this is only a speculative trade.

The BTC/USD pair will lose momentum if it struggles to sustain above $8,904.92 and plunges below $8,496.53. A deeper correction is likely if the 20-day EMA cracks. If the pair plummets below the support zone of $7,413.46–$6,933.90, it will signal that the bears are back in action.