First Signs of Spring for Hibernating Bitcoin?
After a strong performance over the weekend, Bitcoin is showing signs of life.
(1) Price action formed consecutive higher lows (L1-L2) and higher highs (H1-H2). This is a valid bullish reversal pattern.
(2) Price has broken out of a falling wedge denoted by blue lines and consolidated above breakout point.
(3) Bullish divergence on the RSI denoted by red arrows. RSI made higher high which is not reflected in the price action. This suggests that price momentum is transitioning from bearish to bullish.
Are these the first signs of spring for a hibernating Bitcoin? At least for now these are positive short term indications and it appears less likely we will break the support level around $6000 as some feared. However, we are yet to see a significant impulsive upside move supported by high volume which would give reason to believe with greater conviction that the Bitcoin winter is truly coming to an end.
At least in the short term a Bitcoin price showing some strength will provide conducive conditions for alt coins to rally. This should provide more attractive trading opportunities than Bitcoin itself.
(1) Price action formed consecutive higher lows (L1-L2) and higher highs (H1-H2). This is a valid bullish reversal pattern.
(2) Price has broken out of a falling wedge denoted by blue lines and consolidated above breakout point.
(3) Bullish divergence on the RSI denoted by red arrows. RSI made higher high which is not reflected in the price action. This suggests that price momentum is transitioning from bearish to bullish.
Are these the first signs of spring for a hibernating Bitcoin? At least for now these are positive short term indications and it appears less likely we will break the support level around $6000 as some feared. However, we are yet to see a significant impulsive upside move supported by high volume which would give reason to believe with greater conviction that the Bitcoin winter is truly coming to an end.
At least in the short term a Bitcoin price showing some strength will provide conducive conditions for alt coins to rally. This should provide more attractive trading opportunities than Bitcoin itself.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.