Bitcoin appears to be set on staging a comeback, price-wise. The top market cap digital asset is back above $20k from it’s $17k lows and may yet surprise us.
The grandfather digital asset surprised many a trader/investor two weeks ago, when it dipped below a price level that many thought it may never again reach. Its current rise back above the $20k mark, may spell an end to the asset’s – months long – bearish momentum, or it may be a temporary reprieve on its way to revisiting previous lows.
Our last analysis having gone awry, we thought it prudent to get a more detailed view of things to come. With price action still traveling below the Ichimoku Kinko Hyo indicator, despite the recent turnaround, things aren’t altogether rosey as yet, and could still go either way.
Priced at $21,482 (at time of writing,) Bitcoin is about 0.65% on the day the godfather crypto asset – according to the weekly chart taken from quoted from Huobi, streamed through TradingView – we’re opening the week on a second bullish bar, following a bullish harami pattern. If it holds, then we may be starting to enter bullish territory, price moves -at present – aren’t significant enough to warrant the uncorking of a champagne bottle however.
The bullish momentum, however, comes after a 70 day drop which saw $BTC shed about 57% of it’s value. The asset’s stochastic currently flashes oversold, while the MACD’s histogram indicates a slowing in selling pressure. We have bullish divergence displayed on both indicators, but it’s still early days.
On the daily, however, things may still burn red in the short term. We have a bearish three method pattern formed at the beginning of an upward triangle. That having been said, if the bulls have a hard time breaching the $21,5 k resistance level, then we’ll likely see prices break back down below $19k, with a second visit to $17k also likely.
Purchasing Volume is on the decline, while the stochastic oscillator sits in the overbought position. On the other hand, the MACD’s fast line has just peeked over the slow line, but both moving averages are currently swimming below the histogram, which indicates weak – although positive – momentum.
Chances are that the crypto sale season may continue a tad longer, but there’s a chance of bullish momentum overtaking the market in the mid to long term. Keeping one’s eyes on the charts will definitely mitigate any unwelcome surprises in the next few weeks, to months.
