Omkar Godbole published on CoinDesk some technical analysis about bitcoin value recovery taking like point of view a so-called “death cross”. See it.
In spite of having witnessed a so-called “death cross” more than the weekend, bitcoin (BTC) is now eyeing gains above the $7,000 mark.
The much-feared technical indicator (bearish crossover amongst the 50-day moving typical (MA) and the 200-day MA) was confirmed over the weekend, but, as anticipated by CoinDesk, the oversold conditions appear to have place a floor beneath bitcoin rates.
As of writing, CoinDesk’s Bitcoin Cost Index (BPI) is observed at $7,040, getting clocked a 54-day low of $6,443 on Sunday. Meanwhile, the cryptocurrency was final seen altering hands at $7,060 on Bitfinex – up 9.88 % from the preceding day’s low of $6,425.
The recovery is fairly considerably in line together with the historical pattern, which shows that bitcoin tends to regain poise every time the relative strength index (RSI) drops to or under 30.00.
As seen on the daily chart prices as per Bitfinex) above, the RSI fell to 30.00 on Friday, signaling oversold conditions. Further, the death cross was confirmed on Saturday, but didn’t do considerable damage to bitcoin’s cost.
It is worth noting that the death cross looked pretty unconvincing prior to it occurred, i.e. the 50-day MA turned neutral (flatlined) per week ago and remains neutral soon after the bearish crossover, validating the argument place forward by the every day RSI that BTC is oversold. A falling 50-day MA pre- and post-crossover could have brought within a lot of technical sellers.
Further, the cryptocurrency has effectively defended the crucial ascending trendline seen around the weekly chart beneath.