On 18 January, the bitcoin exchange rate came back to around $11 500. However, the bulls still have to fight for the return power on the cryptocurrency market. This is evidenced by the testimony of the charts.
Index of bitcoin prices rose by 25.9% from eight-week low of $9 199,59 made yesterday at 15:44 UTC. At the time of writing, bitcoin was trading at $11 590.
According OnChainFX, the capitalization of the world’s largest cryptocurrency in the last 24 hours increased by 8%. However, this has not convinced the investment community. Some even called the current growth of the cryptocurrency “the convulsions of a dead cat”, i.e., when a large fall in the exchange rate should be a temporary increase, after which the rate again continues to fall.
The analysis of the price chart shows that it is a closure (UTC) above $12 500 (courses given in accordance with Coinbase) will add confidence to the growth from the 100-day moving average (MA) and confirms that a short-term bottom has been reached.
The above itinerary (price according to Coinbase) shows that Bitcoin leaves consistently higher lows on the 100-day moving average (MA) or below it.In the previous two cases, the relative strength index (RSI) showed oversold conditions.Today the relative strength index (RSI) is also at oversold territory (above 30,00). Yesterday bitcoin fall below the level of the 100-day moving average (MA) was short.
The situation is similar to the one that took place in the mid-to end of March 2017, when BTC prices were in the 100-day moving average (MA) for more than a week before you go up. Then, the relative strength index was slightly less oversold conditions.
However, perhaps still early to talk about the day.
Yesterday’s candle with a long tail (a big difference between the intraday low and closing UTC) shows a strong demand for reduction. However, only a positive close today would confirm the rapid recovery relative to the previous day’s low. $9 005.
The above chart (prices in accordance with Coinbase) shows a Candle with a long tail on the demand of the decrease in resistance near the rising trend line (drawn on the lows of July and September).Lower highs and lower lows indicate a downtrend and fall below $500.5 12-day and 10-day moving averages (MA) have a strong bearish bias (the downward direction). The relative strength index RSI remains below 50.00 (in the territory of the bears).
All indicators, with the exception of the first paragraph contribute to further drop to $ 8 690–$8 052 (61,8% Fibonacci 2017).
A possible scenario
The recovery from $9 005 neutralized the bearish Outlook.Daily charts show that the historical pattern (higher lows, 100-day moving average (MA) may be repeated.However, only the closure (UTC) above $12 500 (minimum of 30 Dec) confirms that $9 005 is bottom, and open the way for the rise to $15 800 (rising trend line) and beyond.The sale can continue if BTC can’t hold above 100-day moving average within the next 48 hours. If it works this script can be rolled back to $8 690–$8 052 (61,8% Fibonacci 2017).