Asia kicked off the trading week with a 4% selloff that brought Bitcoin price from $8,050 to $7,700.
The crypto market has largely been following the risk-on price action today, with traditional markets moving higher and commodities moving lower.
We will take a closer look at the key timeframes to try and examine if Bitcoin is nearing a bottom.
Bitcoin closed the week decisively bearish, breaking and closing below the 20-week moving average for the first time since breaking earlier in March.
The bulls will see the retracement into support as being a buy the dip opportunity, so it is unsurprising that Bitcoin is experiencing volatility.
Bitcoin has been stopped dead at the 200 daily moving average which was lost last week and now acts as resistance.
Bearish scenarioWhile Bitcoin is off to a good start to the week, there is still the possibility that the 61.8% retracement fails and sellers pile on in significant size.
The 4-hour chart illustrates that Bitcoin rebounded off lower lows into the 200-DMA and off the back of a bullish RSI divergence.
A bullish divergence occurs when price makes lower lows but the oscillator makes higher lows.
Looking forwardOverall, the Bitcoin market is in a state of uncertainty.
Bitcoin Price Bounces Back to $8.4K but Bearish Bias Remains
gepubliceerd op Sep 30, 2019
by Cointele | gepubliceerd op Coinage
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