Bitcoin Rallies 7% From $9,100, Analyst Deems BTC Drop Over
Bitcoin May Be Forming Short-Term Bottom
Bitcoin (BTC) has finally started to show some life on its short-term chart once again. In the past 8-odd hours, the cryptocurrency has rallied off its $9,150 bottom, moving up 7% to $9,800 where it stands now.
According to a chart from Scott “The Wolf of All Streets” Melker, a popular crypto asset trader and DJ, this sudden breakout has seen BTC move above a key descending wedge and foray above a previous swing low/resistance. What’s more, the Relative Strength Index (RSI) is working on breaking higher, implying further upside, and the bullish engulfing candle structure may suggest a reversal of the bear trend for the time being.
It isn’t clear if this is the bottom of this ongoing downturn, which could last upwards of six weeks should history repeat itself, but one analyst claims that for now, the drop should be over. Analyst CryptoHamster laid out a number of reasons why this is.
Firstly, the one-day Relative Strength Index (RSI) and the Stochastic iteration of this indicator are at their lowest levels since at least February, entering the “oversold” range. The one-day Moving Average Convergence Divergence (MACD) has tapped the zero level, despite the fact that Bitcoin is in a raging bull market according to most analysis.
Also, the Elder’s Forse Index, an indicator meant to exhibit the strength of moves, is at its lowest since November 2018; and historical volatility is almost at 100%, implying a move to the upside to return volatility to levels deemed normal.