Bitcoin May Experience A Relief Rally Following Recent Fall

Statistics show that Bitcoin may be on a corrective rally after the recent price crash but calling a bottom is still too early at this point.
According to the analysis of the technical charts, Bitcoin, the largest cryptocurrency in the market, might be on a corrective rally. The last 24-hours have seen the cryptocurrency trading sideways between $7,900 and $8,400.
As at the time this piece was written, Bitcoin was trading at about $8,152. The global average price for the cryptocurrency according to CoinMarketCap is $8,169. This indicates a 15% increase in the last 24 hours.
Are the Bulls Taking Over?
The technical charts for shorter durations show a potential relief rally for Bitcoin. The hourly chat is currently in the bull flag pattern. If it goes above $8,370, that will be a sign of a continuation rally from Wednesday’s low of $7,665. It will also open the charts for a rise to $9,170.
Apart from the hourly chat, Bitcoin’s relative strength index indicates a bull flag pattern which adds credence to a bullish setup on the chart.
Irrespective of the progress, the 50, 100 and 200-hour moving average still indicate a bearish bias as they are sloping downwards. This means that the rally may not last. Also, the road to $9,170 appears far-fetched with a stiff resistance around $8,710.
Bitcoin’s daily chart indicates that the 5 and 10-day moving average is not in favor of the bulls.
If today’s close is above the 10-day moving average at $8,964, traders will be more optimistic as it is far better when compared to yesterday’s close at $7,665.
Bitcoin’s corrective rally to $9,000-$9,170 may be possible considering the setup of the hourly chart. However, it is too early to predict anything higher than that.

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