Bitcoin Back Up by a Few Inches at $3,400 Today – BTC News Today

The charts show that Bitcoin (BTC) is trading towards the upside although not through a large leap. The top digital asset has managed to trade a little above the $3,400 area having dropped below it a day ago.

There’s a better chance for Bitcoin (BTC) to advance significantly if it can breach the $3,600 resistance level. Last week Bitcoin (BTC) fell to $3,200 which is a 15-month low for the digital asset. It’s 14-week RSI went below 30 indicating an oversold situation.

Bitcoin (BTC) Price Today – BTC / USD

NamePrice24H %
bitcoin
Bitcoin(BTC)
$42,161.00-0.15%

The possibility of a Rally for Bitcoin (BTC)?

Yes. From the charts, we can see an oversold territory at the oversold position which shows that there’s a possibility of a rally for the digital asset. There’s evidence of bargain hunters beginning to buy the digital asset, a move that has the potential to challenge the bearish sentiment. There was a bearish trend indicated looking at the 3-day candle below $3,463.

This position bolstered a bearish tending setup. Despite this development, BTC didn’t just drop to $3,000 as many experts expected in the last 72 hours; it briefly reached a $3,633 high indicating that the bulls still have a little muscle.

If the price crosses the $3,633 resistance level, we could see a sustained and stronger rally. As of press time BTC was trading at $3,414 after trading at $3,325 earlier.

An Analysis of the Chart

The three-day chart indicates an inverted hammer. This is an event that occurs when prices show a short rally in a downtrend. It is typically seen as an indication of the potential to launch the reversal of a downtrend. This bullish reversal will be confirmed when there’s a positive follow-through in the 3-day candle closing above $3,633 on Friday. If this occurs, there could be a sustained rally towards $4,000.

Looking at the daily chart, our 14-day relative strength index showed a higher low compared to the lower low of the price of BTC. The indicator is diverging to favor the bulls. A volume move above $3,633 to verify the short-term reversal will favor the bulls.

Break Below $3,200 Would Reinforce Bearish View

Based on the technical analysis, “A convincing shift above $3,633 will validate the inverted hammer seen in the chart and open doors for a better corrective rally to $4,000. A shift above $3,633 would confirm a bullish divergence from the 14-day RSI. After which an upside shift on the chart toward $4,400 will be a new high. A break below the $3,210 low would reinforce the general bearish view, though oversold conditions via the 14-week RSI may limit the downside to $3,000.”

Bitcoin (BTC) opened at $3,346 24 hours ago. Since then it has had a $3,324 low and a $3,474 high. BTC was trading at $3,413 as of 18:45 Central Standard Time. There’s no sign of breaking beyond $3,633 and avoid breaking below $3,210. However, the bulls can prove that the tendency is over for the day. Bitcoin’s present price of press time is $3,400. We should wait and see how things change in the coming weeks.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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