Bitcoin (BTC) Price Jumps Ten Percent on Its All-Time High Anniversary

Bitcoin could be heading for a stronger recovery rally before the New Year. The major sell-off appears to be fading off. Bitcoin (BTC) Price Today – BTC / USD
NamePrice24H %
bitcoin
Bitcoin(BTC)
$0.00-0.15%
The digital currency is still leading the pack by market value. It has been trading near the $3,200 early yesterday. This represents an 83 percent drop in value from the all-time record high of $20,000, which was reached at the same date last year. BTC has been ignoring the extreme oversold conditions for a few weeks now and struggling to pick a bid. It has suddenly jumped to a high of $3,590 after eight days from around 12:00 UTC. The digital currency was valued at $3,450 on Bitstamp at the time of this writing. With this bounce, bitcoin has validated the oversold readings on the fourteen-week relative strength index. It has also established a bullish pattern of reversal on the three-day chart.

The 3-day chart

The cryptocurrency has created a bullish outside reversal candle. This implies that the price action observed during the days following Dec. 17 engulfed the former three-day candle’s high and low. This candlestick pattern suggests that the timeline began on a pessimistic note, but has ended on an optimistic note. It’s widely considered as an early sign of a bullish reversal. It is even more obvious from the appearance of the pattern at the bottom of the downtrend. However,the bearish to bullish trend change can only be confirmed if the present three-day candle ends above $3,590, which is the high of the bullish outside candle. Also, the relative strength index has caused the development of a bullish divergence in the oversold territory below the 30.00. The trading volume also dropped in recent weeks showing that sellers are beginning to run out of steam. All of this has resulted in a better outlook for BTC. The digital currency is likely to rise above $3,590, well ahead of Thursday’s close.

The Daily chart

Bitcoin closed on the daily chart at $3,596 yesterday. This confirms a falling wedge breakout, implying a bullish reversal pattern and a bullish divergence of the fourteen-day relative strength index. The five and ten-day exponential moving averages have also bottomed out. Bitcoin can also attack the recent high of $3,633 as the days pass and extend gains towards the $4,000 mark. On  chart and the three-day chart,bullish indicators likely indicate that the tide is no longer facing the bears in the short term. Bitcoin looks ready to cross the resistance, which was the Dec 9 high of $3,633. It could rise toward $4,000 in the coming days. The short-term bullish strategy will be invalidated if the digital currency finds support below the low of Monday at $3,181.

More positive news for the digital currency

News that the short position of Mark Dow, the former IMF economist has been closed led the traders to think he may be seeing a bottom on the price of bitcoin. This may have spurred a lot of long positions as a rebound can start from here. In the same vein, Spencer Bogart, Blockchain Capital partner noted in an interview with CNBC Money that now is a perfect time to buy bitcoin. Such increased coverage on bullish forecasts may help stoke further gains.

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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