Bitcoin (BTC) has created a 6 percent recovery from the 90-day low hit on Wednesday, neutralizing the instant bearish outlook.
The top cryptocurrency fell to $6,108 at around 16:30 UTC yesterday on Bitfinex &ndash its lowest level since February six &ndash bolstering the currently oversold situations shown by the everyday relative strength index (RSI) yesterday.
Hence, the subsequent recovery to $6,500 levels at the moment is hardly surprising and indicates that bitcoin could have located a temporary bottom about $6,one hundred. Nonetheless, long-run technical setup remains bearish and the battered bulls will want to see a stronger evidence of bear exhaustion ahead of hitting the industry with fresh bids.
Consequently, the market could stay directionless more than the subsequent 48 hours and bargain hunters might chip in later if the cryptocurrency appears steady about $6,500.
While prices fell to $6,108 yesterday, the RSI designed a larger low, signaling a bullish divergence.
So, the stage is set for a corrective rally, despite the fact that the upside is observed gathering steam only if bitcoin manages to hold above $6,425 (April 1 low) for subsequent 24 hours. In this case, a move toward $7,000 becomes more of a possibility, or even as high as the falling channel resistance, at the moment located at $7,380.
That will be less difficult said than completed, even though, as the moving averages (MAs) are nonetheless biased bearish &ndash the 50-candle, one hundred-candle and 200-candle MAs are all trending south, indicating a bearish setup.
The daily moving averages (5-day and 10-day) observed here are also pointing south, and the broader outlook remains bearish as lengthy as bitcoin is trapped inside the falling channel.
At present, BTC is obtaining a tough time crossing the 5-day MA, presently situated at $six,857.
Bargain hunters will most likely enter the industry soon after the brief-term moving averages have bottomed out.
Whilst charts show early signs of bear exhaustion, the lengthy-term outlook is nevertheless poor for the bulls, as indicated by the pennant breakdown and the bearish crossover between five-month and 10-month MAs.
Scales image via Shutterstock
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Published at Thu, 14 Jun 2018 11:00:37 +0000