2018-8-14 16:26 |
A bounce has just occurred in the price of Bitcoin after it traded near all-time lows of 2018. After a brief recovery in price for Bitcoin, it continued its downward spiral as it gets closer and closer to the all-time lows of this year. The drop has been on significant volume, but a few factors point that we could be nearing the end of the drop.
We have the price forming lower lows while RSI is forming higher lows showing that some selling pressure is coming out of the move. And with the price just trading a few percents away from the 2018 all-time lows, significant buying support would be expected to begin as price approaches this level. Bitcoin futures are also trading at a discount which takes away some selling pressure provided by miners. When the Bitcoin futures are trading at a premium, there is additional selling pressure provided by miners looking to lock in a profit.
Bitcoin Daily ChartFurthermore, we have the MACD crossing the signal line to the upside on the hourly chart, a bullish signal. Concerning price action, it managed a recovery back above the $6,000 mark after spending a few hours below. It is currently trading in a range just above with a return to sub-$6k levels looking likely. The gains have been on low volume providing a further reason that a drop back below $6k is expected, but in the event of a drop below this point, there may be a quick bounce up given the bullish signals described in this article. The bounce which just occurred came to a stop as it approached the 50EMA.
Bitcoin Hourly ChartBullish Case:
Bullish divergence on the daily with price action forming lower lows and RSI forming higher lows showing that selling pressure might be falling off Futures trading at a discount bring some selling pressure provided by miners out of the market Should be significant support near the all-time low of 2018 around $5750 MACD crossing it’s signal line to the upside on the hourlyBearish Case:
Momentum has been strong to the downside recently Price continues to form lower lows and lower highs showing the downtrend is still in play Every test near the all-time low makes this level weaker 50EMA acting as dynamic resistance DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.Breaking: Bitcoin [BTC] Price Bounces From All-time Lows of 2018 was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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