Many technical signals are indicating that the BTC markets may experience a bullish move in coming days following several weeks of heavy selling. Despite longer-term price action and stochastic RSI suggesting an oncoming move up, the immediate price action tells a more tenuous story – with BTC currently testing a critical area.
Longer-Term Technical Indicators Suggest BTC Bullish Bounce May be Imminent
The price of bitcoin appears to have established support at just above the $8,000 USD area, after having lost approximately 60% percent of its value from the all-time high of roughly $20,000 posted on December 17th, 2017 on Bitfinex.
On the weekly chart, the current price action comprises a test of the 38.2% retracement area of the multi-year bull-trend, whilst the stochastic RSI for the weekly, 3-day, and daily charts currently sit below the 20 threshold. If resistance is able to hold at the current area, a major trendline starting from the September 2017 test of approximately $3,000 would appear to have been validated, adding to the confluence of signals indicating that counterforce may be imminent.
Immediate BTC Price Action Tests Critical Area
Despite many longer-term signals indicating the likelihood of an impending bounce, immediate price action transversely shows that further bearish momentum may be a possibility.
As of this writing, the bitcoin price appears to have dropped just below the immediate ascending trendline from the local low of $8,000, in addition to the descending trendline from approximately $12,000 that BTC appeared to have broken earlier today.
If the price is unable to recover and break back above the aforementioned trendlines, a retest of the recent low of approximately $8,000 is highly likely. Should $8,000 fail to hold, a further washout to test the 23.6% retracement area of approximately $5,000 – $6,000 may be likely, potentially validating a trendline stemming from the test of the $1,800 USD area during July 2017.
Do you think the bitcoin markets will bounce off the $8,000 USD area? Or are you anticipating another leg down to test the $5,000 – $6,000 zone? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
Why not keep track of the price with one of Bitcoin.com’s widget services.
Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”