Corrective Bounce
BTC: Price: $8,870 | Market cap: $161 billion | 24-Hr Volume: $51 billion
Trend: Bearish Bitcoin has bounced up by $300 from the one-month low of $8,520 reached during the Asian trading hours and could rise further, as short duration charts are reporting a weakening of bearish momentum.
Notably, the 4-hour chart relative strength index is reporting oversold conditions with a below-30 print. Further, the 4-hour chart shows a bullish hammer reversal pattern.
So, the cryptocurrency could challenge the psychological hurdle at $9,000, which, if breached, would open the door to the descending trendline resistance, currently at $9,275.
The case for a corrective bounce would weaken if a 4-hour candle closes below $8,520 – the low of the hammer candle shown above. That would imply a continuation of the bearish move. Read Analysis |