Here is Why Bitcoin May Have Attained Short-term Bottomed
The performance of BTC is influencing cryptocurrency markets back to the upside today. However, there is a need for more efforts to maintain a level on the upside. This is because the 14 percent surge could be a buyer trap or Bitcoin may have being bottomed and set for a fresh run.
At the beginning of this week, the price of BTC declined by 8.5 percent from $7,100 on December 16 and eventually went below $6,500 in the previous day. Analysts were looking forward to additional declines and Bitcoin eventually surged a whopping 14% to attain $7,450.
Such a move to the upside is the largest since the surge that was influenced by China in late October. BTC markets are not characterized by bullish sentiment and the suggestion by analysts is pointing to the possibility of a short-term bottom.
The move happened when U.S. President Donald Trump was impeached last night, according to the Washington Post.
The analysis of Peter Brandt shows that Bitcoin has clinched unto support.
— Peter Brandt (@PeterLBrandt) December 18, 2019
A look at the longer-term charts reveals that the RSI remains within the oversold half of the scale after a six-month downtrend. However, the upsurge could not take the daily RSI back over 50.
A view of the 2018 chart pattern reveals powerful support close to $6,000 range and it is in a position where Bitcoin moved up. In 2018, the price of Bitcoin was majorly around $6,400; hence, it remains why key support is here.
Alex Krüger initiated a poll in the cryptocurrency community. It was on whether Bitcoin has attained a bottom or not. The result revealed that 42 percent are confident that the bottom was in yet.
Does this look like a THE $BTC bottom to you?
(THE bottom = long term bottom, holds beyond the halving) pic.twitter.com/keEQbAIVOB
— Alex Krüger (@krugermacro) December 18, 2019
The normal thing happened as the altcoins surged to the upside following the uptrend of Bitcoin. However, the gains were not quite powerful as Ethereum surged 5 percent to $130 but remains painfully weak. However, the price of XRP remains under $0.20, and at a two year low. LTC recovered $40 level while EOS surged to $2.50. The aggregate market cap remains under $200 billion though.
Featured image courtesy of Shutterstock. Source: CryptoPress.