ForexMinute.com — Last 24 hours in the cryptocurrency market have been quite positive as Bitcoin attempted yet another rebound, thus escaping from the possible double-bottom scenario it was exposed to last week.
BTC/USD 4H BitFinex Chart
Without denying the long-term bearish trend of Bitcoin market, the price is simply reimbursing itself for now so as to recover near-term losses. For most of the weekend, it was inside a oversold area for quite a long time (below the green Bollinger band threshold around 222) and the current upswing seems nothing but price correction.
As you can see the 4H BitFinex chart above, we have drawn two pink trend lines – one indicating a downtrend from the peak, while other the uptrend from the bottom. If you zoom in, you will see them intersecting each other at 266 – an area where price consolidated sideways for a brief time before crashing to 222. We believe that any upward rally would need to break above 266 to establish a near-term bullish swing, sighting an upside risk towards 315 (notice the pink trend line towards north).
Similarly, the pink trend line to the downside is indicating a double bottom scenario toward 165-175 area. This is the same area which incited the previous rally towards 315 last month. For now, price seems to more focused on testing the double bottoms, as per the technical indicators.
The 4H chart shows price to be below the long-term SMAs, while the RSI is still below 50. At the same time, the MACD indicator is way below the normal threshold. These signals collaboratively indicate a strong, and long, bearish presence in the market.
While Bitcoin is rebounding, the other cryptocurrency are still looking forward to react to it. In over the last 24 hours, altcoins including Litecoin and Peercoin have fallen 5-6% while NXT and Dogecoin by 0.5-1%. In the meantime, only Darkcoin has impressed with a whopping surge of around 10%.