Bitcoin (BTC) Price Latest: Short-Term Rally Possible, Market Oversold
Bitcoin (BTC) Price, Chart and Analysis
- Higher low pattern starting to show.
- Oversold in the short-term but long-term struggles may continue.
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Bitcoin’s Reprieve May be Short-Lived
After dropping in excess of 40% in the last two weeks, with very little news to drive the move, Bitcoin is trying to build a base around the $3,500 - $3,700 level in the last three days. While the longer-term chart set-up remains negative - with a test of $2,970 likely - in the short-term the charts are showing the crypotcurrency heavily in oversold territory – RSI indicator at the bottom of the chart - which may produce a relief bounce higher. The last three daily candles are showing higher lows, a positive for Bitcoin bulls, and need to be built upon if prices are to sustain any move higher.
Longer-term Bitcoin remains negative, with the September 2017 low at $2,970 the current target. If this level is broken decisively, the July 2017 swing-low at $1,790 becomes the next level of support.
Bitcoin (BTC) Daily Price Chart (May – November 27, 2018)
The cryptocurrency marketplace is currently worth just over $121 billion with most coins in negative territory over the last 24 hours. The market hit a peak valuation of $830 billion in January this year.
IG Sentiment Indicator shows that retail investors are 71.8% net-long Bitcoin, a bearish contrarian indicator. However recent changes in daily and weekly positioning, suggest that Bitcoin may soon move higher.
What’s your view on Bitcoin – Bullish or Bearish? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at firstname.lastname@example.org.
--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.