Bitcoin is still looking south, having hit four-month lows today, but the bearish momentum may wane due to short-term oversold conditions, the technical charts indicate.
At press time, bitcoin was slightly higher at $6,453.
The drop to the four-month low has bolstered the already bearish technical setup and raised the odds of a sell-off to $6,000.
Currently, the RSI is holding below 30.00.
Historical data shows BTC stages a "V"-shaped recovery every time the RSI drops to or below 30.00.
The downside break of the pennant indicates scope for a drop below the February low of $6,000.
Further, on the weekly chart, the RSI fell below key support of 53.00 in February, signaling a long-term bullish-to-bearish trend change and is currently hovering below 50.00.
View Longer term, BTC is still eyeing a drop to $6,000 amid a generally bearish market.
The probability of a major "V-shaped" recovery is low.
Only a daily close above 10-day MA, currently seen at $7,214, would signal bearish invalidation.
Bitcoin Bulls Eye $6K Bottom After 4-Month Low
Published on Jun 13, 2018
by Coindesk | Published on Coinage
Mentioned in this article
Brazil's Biggest Brokerage Goes Big on Bitcoin
Grupo XP, Brazil's largest independent brokerage and owner of XP Investimentos SA, is launching an exchange in the upcoming months that will facilitate Bitcoin and Ethereum trading.
Dubai Department of Finance Launches Blockchain-Based Payment System for UAE Gov't
The Dubai Department of Finance has partnered with the Smart Dubai Office to launch a blockchain-powered payment system.
Bitmain Announces Next-Generation SHA-256 Antminer Chips
Bitmain, one of the largest cryptocurrency mining ASIC manufacturing companies, announced on Sept. 21 the release of new SHA-256 mining rigs at the World Digital Mining Summit in Georgia.
Hodler's Digest, September 16-23: Elon Musk Wants Advice on Twitter Crypto Scammers, the US SEC Wants Comments on BTC ETFs
As a result of a security breach on September 14, hackers have managed to steal 4.5 billion yen from Japan's Zaif cryptocurrency exchange, as well as 2.2 billion yen from the assets of the company, with total losses amounting to 6.7 billion yen or around $59.7 million.