The forecast of the bitcoin, what can we expact?
Technical analysis.
Despite the fact that Bitcoin in particular and the whole industry show signs of life - the correction is not over yet.
What to expect in the future?
Bulls need a closing above $ 12500
According to Coindesk, Bitcoin climbed 25.9% compared to a two-month low of $ 9,199, which was reached yesterday at 15:44 UTC.
At the time of writing, Bitcoin (BTC) is trading at $ 11,590.
However, the investor community is not convinced of this positive trend.
Comments on social networks prove that some of them consider the restoration at night as nothing more than an agony.
The analysis of the price chart shows that only the closing (according to UTC) is higher
$ 12,500 (prices in accordance with Coinbase) will give confidence in the price rebound from the level of the 100-day moving average (MA). This fact will also confirm that a short-term low has been achieved. The graph below shows:
Bitcoin steadily put ever higher lows, which were on / slightly below the 100-day moving average.
In the previous two cases, the relative strength index (RSI) indicated that the market was oversold.
To date, RSI is in the oversold area (above 30.00), and yesterday Bitcoin for a short time fell below the 100-day moving average.
The situation is similar to the one we observed in mid / late March 2017, when the price of BTC for more than a week was spinning near the 100-day MA before moving higher.
Yesterday's candle (with a big difference between the intraday low and the closing price) demonstrates a strong drop in demand. However, only a positive closing today can confirm a sharp recovery from the $ 9005 mark.
In the diagram below you can note:
Lower highs and lower lows, as evidenced by a downward trend line and falling below $ 12,500 on Tuesday.
5-day and 10-day moving averages have a strong bearish bias (downward slope).
RSI remains below 50.00 (in the bearish area).
All these factors can contribute to a decrease to $ 8,690- $ 8,844 (61.8% of Fibonacci retracement from growth in 2017).
What's next?
The price recovery from $ 9005 neutralizes the bearish sentiment.
The daily chart shows that the historical model (with higher lows along the 100-day moving average) may recur.
However, only the closing (according to UTC) above $ 12,500 (this is the minimum of December 30) will confirm that the bottom is at the level of $ 9005 (the minimum of the previous day) and will open the possibility for growth to $ 15,800 (the hindrance of the downtrend) and higher.
The massive sale of Bitcoin will continue if the BTC fails to hold above the 100-day MA within the next 48 hours. In this scenario, prices can test the level of 8690-8052 dollars (61.8% of Fibonacci retracement from growth in 2017).