The price of bitcoin has bounced off a recent low of $7,300 USD in recent days, with prices hovering testing resistance at $9,000 as of this writing. The majority of altcoin markets have bounced alongside BTC, indicating that the cryptocurrency markets still remain correlated to bitcoin.
Also Read: Snowden Releases NSA Documents Showing Bitcoin Was “#1 Priority”
Bitcoin Bounces With Strength
The price of bitcoin has gained approximately 20% since bouncing off the $7,300 area four days ago. Bulls are currently testing resistance at the $9,000 area.
When looking at the daily chart, one can infer that the recent bounce off the $7,300 area comprised a fourth point of contact with the long-term ascending trendline established by the crash down to the $6,000 area that occurred last month.
Over the course of coming weeks, traders will no doubt be watching for a confirmed break above or below the current symmetrical triangle in which BTC price action has recently channeled.
Some Analysts Predict Impending ‘Death Cross’ for Bitcoin
The bullish momentum of recent days has been overshadowed by increasing concern that the 50-day moving average for BTC may break below its 200-day moving average – a bearish technical indicator known colloquially as a ‘death cross.’
The last time a death cross occurred was following bitcoin’s first run up to $1,000 back in 2014.
Altcoin Markets Remain Heavily Correlated to BTC
The cryptocurrency markets remain extremely correlated to bitcoin, with most markets experiencing significant bounces in unison with bitcoin.
In recent days, Ethereum has recovered by 25%, after establishing a long-term descending trend-line and bouncing off a new low for 2018 of approximately $450. Ethereum’s crash down to $450 comprised a full retrace of the gains made by ETH since November last year.
Ripple has also gained approximately 25% since establishing a new low for 2018, following XRP’s bounce off a local low of approximately $0.50 several days ago. Stellar produced among the strongest of the recent bounces – gaining almost 70% since making a full retrace down to the $0.16 area.
Unlike many other altcoins, Litecoin managed to avoid establishing a new low for the year in recent days – with LTC bouncing off support at the $140 area.
Do you think that bitcoin will break above or below its symmetrical triangle in coming weeks? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Trading View, Bloomberg
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