Bitcoin price is making a small uptrend from this morning after the significant downtrend over the last few weeks. Check out the BTCUSD analysis: Bitcoin Bull Trap or Price Recover?
15 August, AtoZ Markets – BTC looks to have fought off a recent bear market breakdown that saw prices landing just above the yearly low of $5,755. It seems that the $6,000 level has emerged as a new support level for the cryptocurrency. Bitcoin lost approximate 7% of its value over the past 24 hours and 14% of its value over the last seven days. Ethereum and Ripple have registered even bigger decline over the same periods.
Bitcoin Bull Trap or Price Recover?
A Bullish Engulfing candlestick pattern has been emerged in 1D timeframe. During a downtrend, the Bullish Engulfing pattern represent an opening at a new low and closes at or above the previous candle’s open. This resembles that the downtrend has lost momentum and the bulls may be gaining strength.
The 100 SMA just crossed below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This suggests that the selloff is more probablily to resume than to recovery or that support is more likely to break than to hold.
However, RSI formed higher lows while price had lower lows, creating a bullish divergence for the Bitcoin. Moreover, the same is the case for stochastic as it also had higher lows in the same period. Both oscillators are already climbing out of the oversold region to signal a return in bullish momentum.
Additionally, BTC price could gain enough momentum to test the nearby area of interest around $6,800 to $7,000 around the moving averages inflection points. Also, the gains beyond those levels could take bitcoin price to the $7,000 levels.
Checkout the video by 7marketz Inc. Co-Founder, Yagub Rahimov, for more insights and a full analysis.
Shidan Gouran, President and CEO of Global Blockchain Technologies said bitcoin is an undervalued asset. Currently, BTC is sitting in $6000 range, which happens to be the approximate computing cost of mining a Bitcoin. He believes that the Bitcoin price might not go further down from here.
“Upcoming new regulations and new trading platforms will set the scene for the pool of Bitcoin investors to expand considerably, which will bring a lot of activity to the market, and will ultimately drive the price upward. In short, it can’t go down – and with what is on the horizon, it has many ways to go up.”
Most notably, a Turkish lira crisis and the sharp decline in the EUR against the USD. That’s supposed to be a bullish environment for Bitcoin, which seeks to establish itself as an alternate to national currencies.
Think we missed something? Let us know in the comments section below.