ForexMinute.com – After staying in a depressive bearish bias for weeks, Bitcoin made a sharp recovery as buying pressure intensified. Traders however rubbished the spike, thinking it as yet another bull run.
BTC/USD 4H BitFinex Chart
The market is not optimistic, but yet looks much better than what we encountered in the last few days. In over the last 24 hours, the BTC/USD has surged around 20% thanks to the sudden arrival of bulls that took the value from 171 to around 230 within only 20 hours. The market, as it looks now, indeed gained grounds by bringing price to a respectable position before the market pulled back.
The technical indicators meanwhile remained favorable to bears, as the price continued to stay below the key moving averages, and RSI around 44. On the other hand, the 12-hour EMA happened to remain below the 26-hour one, while MACD way down to -16. You can also notice the current volatility in the market (the widened Bollinger bands), indicating a sharp price movement in either direction.
Bitcoin’s past however refers to the current uptrend to be nothing but a bull run, in which price deflates shortly after rising stupendously. In case it happens – which is likely – the price may retest the old support around 171 once again, with a downside risk towards 166.
In case the prevailing bullish corrections extend, price can still face a strong psychological resistance at around 250, with upside risk towards 275. A near-term bullish bias though will only establish once the price crossed above the 300-mark. A long journey ahead for that.
As usual, Bitcoin’s spike helped altcoins to regain their foot as they too rose sharply in over the last 24 hours. While Litecoin surged by around 7%. Darkcoin, Dogecoin, NXT and Peercoin jumped 20-30% within the same span.