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
Coinage
Mentioned in this article
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.