Many technical signals indicate that the BTC markets can see a bullish advance in the coming days after several weeks of heavy sales. In spite of long-term price actions and stochastic RSI, indicating a reverse movement, the current price action tells a more creepy story - with BTC currently testing a critical area.
The price of bitcoin appears to have established support at just above the $8,000 USD area, after having lost approximately 60% percent of its value from the all-time high of roughly $20,000 posted on December 17th, 2017 on Bitfinex.
Markets Update: Long-Term Signals Suggest Bullish Bounce Imminent for BTC
On the weekly chart, the current price action comprises a test of the 38.2% retracement area of the multi-year bull-trend, whilst the stochastic RSI for the weekly, 3-day, and daily charts currently sit below the 20 threshold. If resistance is able to hold at the current area, a major trendline starting from the September 2017 test of approximately $3,000 would appear to have been validated, adding to the confluence of signals indicating that counterforce may be imminent.
Despite many longer-term signals indicating the likelihood of an impending bounce, immediate price action transversely shows that further bearish momentum may be a possibility.
As of this writing, the bitcoin price appears to have dropped just below the immediate ascending trendline from the local low of $8,000, in addition to the descending trendline from approximately $12,000 that BTC appeared to have broken earlier today.
Read more: bitcoin.com
