Bitcoin (BTC) is teasing a short-term bullish reversal, having simply recorded its greatest single-day acquire in seven months.
Costs closed yesterday (UTC) at $Four,257, a 24-hour improve of 11.43 p.c and the very best each day acquire since April 12, in line with CoinMarketCap.
Again then, the cryptocurrency was buying and selling above $6,900, 38 p.c larger than the present worth of $Four,345. Curiously, the 13 p.c worth acquire witnessed that day had been preceded by a 45 p.c drop and a minor bout of consolidation.
Extra importantly, the massive bullish transfer of April 12 marked the start of the rally, which noticed costs rise to close $10,000 by early Could.
Equally, yesterday’s 11 p.c rise had been preceded by a 44 p.c drop to 14-month lows beneath $three,400. Additional, optimistic indicators are build up on the brief length technical charts. In consequence, bitcoin may very well be in for a short-term bullish reversal, just like the one witnessed after April 12.
Every day chart
Yesterday, BTC created a giant bullish candle, validating the bearish exhaustion signaled by the earlier three long-tailed candles. With the robust transfer larger, the 14-day relative power has moved again into undersold territory above 30.00, confirming a bullish divergence (larger low on RSI).
So, it’s attainable historical past is about to repeat itself with a bullish transfer towards $5,000.
Notably, the bullish case seems to be stronger than it did seven months in the past. The RSI hit document lows in the course of the current sell-off, signaling excessive oversold situations, versus readings above 30 registered earlier than April 12.
Over on the Four-hour chart, the cryptocurrency is probing the falling channel resistance of $Four,320 at press time, having confirmed a double backside breakout with a transfer above $Four,120 earlier at present.
Notably, the bull flag breakout seen within the 15-minute chart is signaling that the falling channel hurdle may very well be breached within the subsequent few hours. The breakout, if confirmed, would solely bolster the already bullish technical setup.
- BTC’s 11 p.c worth acquire has probably turned the tables in favor of the bulls.
- A falling channel breakout on the Four-hour chart, if confirmed, would open the doorways for a take a look at of psychological resistance at $5,000.
- The short-term bullish case would weaken if a convincing break above the 10-day exponential transferring common (EMA), presently at $Four,293, stays elusive for the subsequent 48 hours.
Disclosure: The writer holds no cryptocurrency property on the time of writing.
Bitcoin picture through CoinDesk archives; charts by Buying and selling View