Bitcoin saw a rather impressive move to the upside yesterday squeezing non believers as the move was violent and not driven by specific news.

Earlier in July in our piece, Bitcoin – Can It Move Higher (again)?, we suggested Bitcoin had shown signs of life and was making a bottom formation from a technical point of view.

The move yesterday took the cryptocurrency above the 50 day average and the resistance at 6900. We are currently approaching the 100 day average which will be the first resistance to watch.

The big downtrend from highs is broken, but in order to get a “real” up trend, we need to see Bitcoin form a longer term base.

Source: chart by Bloomberg