Bitcoin Price Eyes Double Bottom Reversal After $4K Defense

Bitcoin's defense of key long-term support for the second time in four days is a positive sign for a potential recovery rally.

As a result, BTC fell below the 200-week exponential moving average of $4,182 earlier today.

The breach of the EMA support may have trapped the bears on the wrong side of the market, as BTC is currently trading at $4,330 on Bitstamp, having clocked an intraday low of $4,061 earlier today.

It is worth noting that the long-term EMA was first breached on Tuesday.

The repeated failure to beat the long-term support indicates the bears have likely run out of steam.

As seen above, the 14-day relative strength index is holding below 30.00 for the ninth day straight, signaling ongoing oversold conditions.

Corrective rallies above the 10-day EMA, if any, could face exhaustion near $5,000.

View Repeated defense of the 200-week EMA likely indicates seller exhaustion.

Below the 200-week EMA of $4,182 could prove costly, as the next major support is located directly at $3,100.

Bitcoin image via CoinDesk archives; charts by Trading View.