Bitcoin Price Eyes Double Bottom Reversal After $4K Defense
Bitcoin sent a positive signal to the potential recovery rally for long-term long-term support for the second time in four days. The major cryptocurrency due to market price was lower than the $ 4,242 (Wednesday's day candle) in Asia trading hours, and the bear returned to the driver's seat. As a result, BTC fell below the 200-note index moving average (EMA) of $ 4,182 today. But because BTC is currently trading at $ 4,330 on Bitstamp, breaching the EMA support may have put the bear on the wrong side of the market. Today posted a daily low of $ 4,061. It is worth noting that the long-term EMA was violated for the first time on Tuesday. After that, the sale ended at the lowest price of $ 4,048 in 14 months, and the price recovered to $ 4,500 the next day. Repeated failures to overcome long-term support indicate that bears are likely to run out of steam. As a result, more powerful calibration meetings can be on the opening. 4 hour chart
On the 4-hour chart, Relative Strength Index (RSI) produced a gentle difference with a lower minimum. As a result, BTC will test $ 4,635, the neckline of the double bottom bullish reversal pattern. Once the break above is confirmed, it will rise to $ 5,100 (target according to the measured height method). Daily chart
As can be seen from the above, the relative strength index for 14 days is kept below 30.00 for 9 consecutive days, suggesting excessive condition. The 5-day and 10-day EMAs currently at $ 4,546 and $ 4,933 are still tilted to the south. Corrective actions above 10 days EMA can be depleted near $ 5,000. View
Repeated defenses of the 200-week EMA are likely to indicate a seller's exhaustion. (Edited Breaks above $ 4,635 will result in a double bottom breakout on the 4 hour chart and a stronger recovery rally at $ 5,100. Because the next major support is located directly at $ 3,100 (200 simple week moving average), the 200 week EMA $ 4,182 weekly deadline (UTC time) can prove costly.
Disclosure: Authors do not retain cryptocurrency assets at the time of writing. Bitcoin images through CoinDesk archives; Charts by Trading View