as bitcoin prices drops to $3,000 last Friday due to panic selling as triggered by china's exchange ban news, just a few days later, the price is already back at that level, having gained 33% in three days.
The exact cause for the recovery is still uncertain, it could be an attribute of a lot of factors such as, oversold technical conditions, China's exchange ban will not impact all forms of crytocurrency trading or the introduction of japan exchange being stronger right now , nevertheless, the going strong bitcoin is a very good news to hear.
Is all-time high in sight?
Price action analysis says bitcoin could be setting up for a solid rally to record highs, the likes of which it saw from mid-July. However, the bulls still need to clear some key technical resistance levels, before claiming victory over the bears.
The price action witnessed over the last 48 hours is similar to conditions seen in mid-July. At that time, the market saw a huge breakout, followed by a rally to record high of $5,000.
If bitcoin ends on a positive note today, preferably above $3,958 (50-day moving average), a bullish reversal would be confirmed.
A bullish reversal confirmation followed by a break above $4,250 would add credence to the rebound from the 100-DMA and shall boost the odds of the digital currency rallying to fresh record highs above $5,000 (cross fingers).
Only a daily close below $3,600 would revive the bearish view.