- Golem is bullish over the short-term against Bitcoin, following a strong technical breakout to a fresh 2019 trading high
- The four-hour time frame shows that the GNT / BTC pair has yet to reach its near-term upside objective
- The cryptocurrency’s medium-term outlook is bullish, with price now trading above the GNT / BTC pair’s 200-day moving average
Golem / Bitcoin Short-term price analysis
In the short-term Golem has turned bullish against Bitcoin, with the cryptocurrency surging to a fresh 2019 trading high, after a bullish breakout above neckline resistance.
The large inverted head and shoulders pattern currently in play on the four-hour time frame suggests that the GNT / BTC pair has scope to trade even higher. The overall upside objective of the bullish pattern would take the cryptocurrency towards the December 4th, 2018 trading high.
Technical indicators are bullish on the four-hour time frame, although the Relative Strength Indicator is showing that the GNT / BTC pair is currently overbought.
Traders should expect further upside in the GNT / BTC pair while price continues to trade above the neckline of the bullish inverted head and shoulders pattern.
The Relative Strength Index on the four-hour time frame is currently showing that the cryptocurrency is extremely overbought.
The MACD indicator on the four-hour time frame is also generating a strong buy signal.
Today’s short-term price spike does not appear to be supported by any positive news from the Golem project, and can most likely be attributed to either price manipulation, or trading on insider information.
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Golem / Bitcoin Medium-term price analysis
Golem has turned bullish against Bitcoin over the medium-term, with the GNT / BTC pair trading above its trend defining 200-day period moving average for the first time since July 2018.
Buyers have successfully triggered an inverted head and shoulders pattern on the daily time frame; traders should note that if the current rally reaches its bullish target, a much larger inverted head and shoulders pattern will form.
Technical indicators on the daily time frame closely mirror the four-hour time frame, with the MACD generating a strong bullish signal, while the RSI has moved into extremely overbought territory.
The potential formation of a much larger inverted head and shoulders pattern on the daily time frame could be significant technical development to watch over the medium-term.
Relative Strength Indicator
The RSI indicator has moved into extreme overbought territory on the daily time frame and could signal an eventual technical correction lower.
The MACD indicator is generating a strong buy signal on the daily time frame.
Although, Golem was quite popular a few years ago, when it had its ICO in late 2016, it is still in development, with no clear deadlines and somewhat infrequent communication from the team.
Still, the project is well known within the crypto community and it is planning a few important releases in 2019.
Both the four-hour and daily time frames highlight the strong bullish breakout that has recently occurred in the GNT / BTC pair. Furthermore, a sentiment shift is underway, with price trading above its 200-day moving average for the first time since last July.
Traders should monitor the recent up move closely, particularly if the advance reaches its bullish target and forms a much larger inverted head and shoulders pattern.
Correction: An earlier version of this analysis incorrectly suggested that GNT price action was related to an announcement of Golem’s beta live. In fact, it launched in April, 2018.
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