Over the previous four days, Bitcoin price recorded consecutive declines which saw price form a low around $6350 yesterday. It has since bounced, and the price is back trading above $6500. Today’s rise is on low volume. This means there might not be much strength behind the move but price and RSI have been forming higher highs and higher lows which is a bullish sign. The Altcoin market is performing strongly with many recording double-digit gains. XRP has appreciated over 20% in the last 24 hours.
The key factor to take into account with Bitcoin remains the descending triangle pattern which has been forming since January. The pattern would indicate Bitcoin is set to return back below $6,000 and drop hard below. This may be one of the reasons that altcoins are outperforming. A significant appreciation in Bitcoin would bring it close to the downward trendline of the descending triangle pattern, and it would likely meet strong resistance for a quick reversal.
The hourly chart shows the turnaround in greater detail. The turnaround was preceded by a bullish divergence between price and RSI. Price continued to form lower lows and lower highs while RSI started to form higher highs and higher lows showing falling seller momentum. Traders who would have noticed this pattern and taken long positions would have capitalized on the shifting momentum. The outlook currently is neutral. Although the movements have been bullish so far today, the volume is low, and the descending triangle pattern should be closely monitored.
- Turnaround preceded by a bullish divergence between price and RSI.
- The turnaround is on low volume.
- The descending triangle pattern is important to be monitored.
|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.|