Bitcoin (BTC) continues to mount a recovery despite the current bearish “death cross” chart occasion.
As of writing, bitcoin is changing hands at $7,400 on Bitfinex as well as the average price tag on leading exchanges, as represented by CoinDesk’s Bitcoin Cost Index, is noticed at $7,380.
The cryptocurrency’s 15-percent rally from the 54-day low of $6,425 set on April 1 is encouraging and pretty much in line using the historical relative strength index (RSI) pattern.
That stated, the bulls’ job is only half done, and bitcoin continues to be stuck in a falling channel. So, a clear break above $7,800 is now required to confirm a bullish trend reversal and avert yet another sell-off.
A day-to-day close (as per UTC) above the falling channel resistance would signal a short-term bullish trend reversal – i.e. the sell-off from the March five higher of $11,700 has ended and would allow a test of provide about the larger descending trendline sloping downwards in the Dec. 17 high and Jan. six higher.
Note, the falling channel resistance is lined up at $7,900 and is noticed sloping downwards to $7,800 by tomorrow. A move above that level would lift the RSI above the descending trendline, thus bringing in more technical buyers into the market place.
The 4-hour chart under shows scope to get a rally to $7,800-$7,900 over the following 24-48 hours.