Bitcoin rallied significantly to kick off the week, reaching towards the 200 day EMA on the daily chart. It should also be pointed out that we still have a bit of selling pressure just above, so I think that we need to see some type of pullback to continue the upward momentum. Recently, I have been watching capital flows out of China, which quite often find their way through the cryptocurrency markets. As they are starting to pick up, shown by the devaluation of the Chinese yuan, it’s possible that this has more to do with Chinese citizens trying to get their money out of the country than anything else. Nonetheless, price is price and we need to pay attention to how it acts. At this point, I would anticipate a lot of resistance just above, but it certainly looks as if the $7200 level is trying to offer a bit of a “floor” for a move higher. Clearing the $8000 level would be rather significant as well.
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