After enjoying a period of consistent rise for a significant part of the latter half of 2017, Bitcoin, the popular cryptocurrency, saw a steep dip in its prices. From trading at $ 13,800 in December 2017, the coin rolled down to $6200 within a couple of months in February 2018. Since then, the currency has been losing consistently. However, the money has begun gaining lately, prompting many to wonder if this would mark another bull run for Bitcoin. Well, the trends inevitably seem to suggest this.
The average convergence-divergence histogram for Bitcoin shows higher lows, which indicates seller exhaustion. Several other indicators also suggest oversold conditions. This can be an indication of Bitcoin’s recovery process, gaining pace. However, several other signs need to be taken into account.
What Do the Trends Suggest?
Bitcoin is currently trading at $8,130 on Bitstamp. However, Bitcoin has also faced rejection every time it soared higher than the $8,500 mark on October 1. As part of the corrective bounce, there was a $400 pullback from Septemeber 30 in Bitcoin’s price. This was expected to end the lows the $7,700 mark. However, Bitcoin’s MACD histogram says otherwise. A technical tool was used to measure the trend strength and evaluate trend changes. It discovered that the MACD had recovered substantially from the September 26 mark of -236 and reached -56. This might suggest the passing of bearish momentum and the arrival of another bull run for Bitcoin.
The MACD has noticed shallower bars going below the zero lines over the past few days. Not only are higher lows indicative of seller exhaustion, but they also indicate the scope for a stronger corrective bounce. Also, the long tails attached to the previous two candles suggest that there was a weakening in the selling pressure on Wednesday and Thursday, which allowed the prices to cover up for much of their lost ground before the closure of their UTC. In simple words, buyers have begun testing the resolve of the sellers in keeping Bitcoin’s price at lower levels.
Moreover, the relative strength index (RSI) over 14 days has continued reporting oversold conditions at a below-30 print. Overall, the rising prices have defied several top “ crypto experts” whose Bitcoin prediction indicated a stunted growth for the most popular cryptocurrency. The descending channel on the hourly chart would most likely end with another bullish turn of events for the coin. This would imply continuing the rally from lows of $7,700, which could be fueled up to $8,833.
Can Bitcoin’s Bull Run be Impeded?
During its rise, Bitcoin may go through stiff resistance at the 200-day moving average, which is currently at $8,503. Getting past this mark became a Herculean challenge for Bitcoin on October 1. The bull run will become feeble if prices begin to gain acceptance below $8,000 in the coming days. However, that looks very unlikely. Also, any momentum to go past $8,800 or higher could be significantly short-lived as most longer duration charts are still biased toward the bearish run.
Trends show that another bull run for Bitcoin is on the cards. However, one must keep track of Bitcoin news firmly and consistently monitor the patterns to find which way the coin would swing.