2018-8-15 17:22 |
After returning to sub-$6k levels, Bitcoin is on the rise today trading around $6,400. Both the RSI and price action are forming higher lows, with the outlook overall being more bullish. The last few weeks have been a bloodbath for the cryptocurrency markets with steep losses across almost all coins. These weeks have seen Bitcoin drop from $8500 to near all-time lows for 2018.
Whether this recovery is real is a big question on traders minds given the strong negative sentiment of the last weeks. A few factors would suggest that there is some strength behind this recovery and price could be after bottoming out. With the price action and RSI both forming higher lows, there is less selling pressure than before. The possibility of a short squeeze is also on the table. Also, with futures no longer trading at premium selling pressure provided by miners looking to lock in a profit is also out of the market. There is also a significant volume behind this upward movement. Most failed upward movements before downward a continuation continues, known as a dead cat bounce, are typically on low volume.
Bitcoin Daily ChartOn the hourly, the price rise has seen price action move above its 50 and 100EMA to trade close the 200EMA. The 200EMA is typically a hard point to get over as it can be used to define whether the price is in an uptrend or a downtrend. At the moment it appears to be acting as resistance.
Bitcoin Hourly ChartKey Takeaways:
A lot of factors indicate that there is real strength behind this move and it is not a dead cat bounce Price action and RSI forming higher lows showing selling pressure is coming out of the market. Volume on the recovery so far has been significant and above average Price trading above 50 & 100EMA on the hourly and the 200EMA looks to act as 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.Dead Cat Bounce or Real Recovery for Bitcoin [BTC] Price? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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