Bitcoin Price Bounces 15% After 14-Month Low
A recovery of 15% of Bitcoin in the past 14 months of yesterday may have opened the door for short – term price consolidation.
Major cryptocurrency by market value declined through support of a trend line connecting August 2015 and August 2016, and dropped to $ 3,474 yesterday. This is the lowest since September 17, 2017 (price per Bitstamp). At that level, BTC fell 38%, compared to $ 6,300 two weeks ago.
However, there was little decline and yesterday (US $ 3,939) ended yesterday. This confirms the overdosage reported by the technical indicators. As a result, mergers can be difficult.
BTC holds $ 3,920 at Bitstamp in press time, and today it is $ 4,069.
However, if the current $ 3,830 long-term trend line support is again violated, a 15% recovery can turn out to be a "dead cat bounce." On the other hand, if the price exceeds $ 4,000, the prospect of a robust municipal assembly will improve.
4 hour chart
The strength of the Relative Strength Index (RSI) and the decline of the channel on the 4 hour chart indicate a bullish trend change in bearishness. As a result, a strong recovery rally to $ 4,461 (downward sloping 50-candle EMA) can not be ruled out.
200 Candle EMA 100 Candles Below EMA 50 candles Under EMA stacking order indicates that the path of least resistance is at a disadvantage, profits above this level may be difficult to grasp.
On a daily chart, RSI displayed a bullish outlook (high). This pattern is trusted when the RSI moves to the underland area by more than 30.00.
However, the main trend will remain weak as both the 5-day and 10-day EMAs are tilting downward.
As you can see from the chart above, BTC is currently stuck between $ 400 million in full support of the 200-week EMA and three-year upward trend support. Support for the $ 3,830 trend line will invalidate the signs of a revival on the 4 hour and daily charts.
BTC's defense of long-term trend line support can be a token of depletion for sellers. As a result, the price can add up to about $ 4,000 over the next day or two days.
Rest on psychological hurdles of $ 4,000 will open the door for $ 4,500, adding to the confidence in the optimistic setting of the 4 hour chart.
On the downside, if you move below $ 3,830 (support for trendline), you can reaffirm yesterday's $ 3,474.
Disclosure: Authors do not retain cryptocurrency assets at the time of writing.
Image of a ball splashing through a shutterstock; Charts by Trading View
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