risks

The new daily gains prove that bitcoin’s price is trying to find a new bottom since the past week was one of the worst for the benchmark cryptocurrency with a $2000 decline as we read in the bitcoin news previously.

This morning Bitcoin recorded a new low since Nay 17 but the cryptocurrency didn’t spend much time at the price levels and over the past hours, we are seeing a decent comeback in the green. Bitcoin is trading at $700 above the daily lows where the current daily high almost reached $7.300. This outcome could be a Hammer candle as seen on the daily charts which are known to be a bullish reversal pattern. There is still time until the daily candle closes but it looks promising so far.

Adding to the new daily gains, we reported about the significance of the mid-term ascending trend-line which started forming in April this year and the candle’s body is really safe above this level. The daily close above the $6800 will be considered extremely bullish for Bitcoin and could even signal a temporary end to the past week’s declines.

Following the recent gains, Bitcoin is facing the significant $7.300 resistance area which was a clear gate for Bitcoin over the past three days and in case of a break up, the next resistance level is standing at $7.700 and in order for Bitcoin get back to the track, it will have to get at least to the $8,000 benchmark and confirm the support by creating another low slightly higher than this one.

Looking at the price from below, the $7000 level had become the first resistance level and in case BTC goes lower, the $6,800 is the next support level with the significant ascending trend line. Further down the line is another $6,000 and $6,200 that could serve as a strong demand zone. The RSI found support around the 20 which is the lower RSI since November 2018 and it is now facing resistance around the 30 levels along with the descending trend-line.

The stochastic RSI oscillator finally produced a bullish cross-over at the oversold territory but the oscillator hadn’t reached the neutral territory so far. During the weekend, there is a minor amount of volume which could be a consequence because of the weekend.