Bitcoin (CRYPTO: BTC) was trading about 3% higher during Saturday’s trading session on continued momentum after breaking up bullishly from a falling channel pattern on July 27, which Benzinga pointed out on July 25.
During Friday’s session, Bitcoin negated the downtrend it had been trading in within the falling channel, but hasn’t yet confirmed a new uptrend on the daily time frame.
An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.
The higher highs indicate the bulls are in control, while the intermittent higher lows indicate consolidation periods.
Traders can use moving averages to help identify an uptrend, with rising lower time frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend.
Rising longer-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.
A stock often signals when the higher high is in by printing a reversal candlestick such as a doji, bearish engulfing or hanging man candlestick. Likewise, …
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