Bitcoin is up more than 5% on the day, following a steep fall in the past week. Could current bullish price action be a sign of market recovery?
Bitcoin – as well as the rest of the digital assets market – assumed quite the nosedive in the past week, on the back of overall global economic uncertainty. We live in harrowing times, which – due to myriad reasons – caused the biggest cryptocurrency by market capitalization to slump in price.
Crypto markets, having shown signs of dwindling confidence in the past 2 -3 months, finally buckled – about a week ago – on the back of knock-on effects triggered by negative global events. Bitcoin followed the US stock market into the red, while US equities dipped on account of runaway inflation rates. Adding to the bearish run is the war in Ukraine, which has begun to weigh heavily on global economic sentiment.
At time of writing, things are starting to look slightly rosier for the grandfather crypto asset – in terms of price action – though they do not, as yet, point to a return to more bullish momentum. Having fallen a near-damning 32% in the past 8 days, $BTC has recovered about 5.5% of its value and is currently priced at $30,716 (according to prices quoted from Huobi, streamed though TradingView.)
Having slumped as low as $26,650 and closing at $29,024.18 in the previous day’s trading session, the Bitcoin price opened today’s session auctioning at $29,024.19. The low for the day was established at $28,010, while current highs are at $31,075.
Taking yesterday’s (what seems to be a) bullish hammer into account (though it still may come to be invalidated,) today’s candle may come to engulf the previous session’s. This may either spell a return to bullish form for the digital currency, or merely a temporary reversal of bearish momentum.
A break above the $35k, and $39k resistance levels could confirm a resurgence of bullish buying action within the market, which would buoy the rest of the crypto market – which is currently flashing all shades of green – to new highs. Failing which, we may see – though quite unlikely – move below the $25k support level, which would have most of crypto twitter once again singing the assets requiem.
A bullish in the market stochastic seems to speak of a change in momentum, though it is still too soon to tell. The MACD’s histogram also offers a touch of hope, as – while still bullish – it has turned lighter. The indicator’s Moving Averages haven’t yet pointed to anything positive. Cautious traders would wait for tomorrow’s close before making any moves, but current market volume indicates that we may be in for a bullish move.
