Qtum / Bitcoin Technical Analysis: Flash Spike
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- QTUM is bullish against Bitcoin over the short-term, with the QTUM / BTC pair trading at its highest level since December 2018
- The four-hour time frame shows that a bullish inverted head and shoulders pattern has formed
- The QTUM / BTC pair’s medium-term outlook is bullish, with price now trading above the cryptocurrency’s 200-day moving average
Qtum / Bitcoin Short-term price analysis
QTUM is bullish against Bitcoin over the short-term, following the recent surge in the QTUM / BTC pair, which sent price to a fresh 2019 trading high.
The move higher has invalidated a bearish head and shoulders pattern and created a large inverted head and shoulders pattern on the four-hour time frame.
Traders should expect the short-term bullish bias to remain intact while price trades above the head of the invalidated head and shoulders pattern.
QTUM / USD H4 Chart (Source: TradingView)
Pattern Watch
The overall bullish objective of the inverted head and shoulders pattern on the four-hour time frame would send the QTUM / BTC pair towards the July 22nd trading high.
MACD Indicator
The MACD indicator is bullish on the four-hour time frame, with the MACD signal line still generating a solid buy signal.
Relative Strength Index
The Relative Strength Index is bullish on the four-hour time frame, although price is now starting to correct from overbought territory.
Fundamental Analysis
QTUM surged after the announcement of partnerships with Zeux, which calls itself “The World’s First Crypto Mobile Payment and Investment App.” Zeux has added Qtum to their app with their official launch in the UK and a soft launch in the rest of EU. The app allows to use QTUM for all point-of-sale payments with merchants that accept Apple Pay, and Samsung Pay.
Qtum / Bitcoin Medium-term price analysis
QTUM is bullish over the medium-term against Bitcoin, with the QTUM / BTC pair now trading well above its trend defining 200-day period moving average.
The daily time frame clearly shows a bullish breakout from a symmetrical triangle pattern that has been in play since the start of the year. The daily time frame also shows bullish MACD price divergence, which has yet to be reversed and extends back to July of last year.
Technical indicators on the daily time frame remain bullish despite a minor technical correction in the Relative Strength Index.
QTUM / BTC Daily Chart (Source: TradingView)
Pattern Watch
Traders should note that the overall upside objective of the triangle pattern is measured by taking the lowest point of the triangle pattern to the bullish breakout area.
MACD Indicator
The MACD indicator is also bullish on the daily time frame with both the signal line and MACD histogram generating strong buy signals.
Relative Strength Indicator
The RSI indicator remains bullish on the daily time frame despite a minor technical correction lower.
Fundamental Analysis
In the medium term the project has potential. It was able to develop some solid partnerships, with companies such as Amazon Web Services, and has a tech savvy team.
Conclusion
The recent bullish breakout in the QTUM / BTC pair has changed the dynamics of the cryptocurrency, with the pair now holding a bullish bias over both the short and medium-term.
Further short and medium-term gains remain likely for the QTUM / BTC pair while price trades above the cryptocurrency’s former monthly trading high.
The overall upside objective of the inverted head and shoulders pattern on the four-hour time would take the QTUM / BTC pair towards the July 22nd trading high, which would reverse the presence of any bullish MACD divergence on the daily time frame.
For a refresher course on the project we prepared a coin guide for QTUM here.
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