Bitcoin clocked six-day highs above $9,000 over the weekend, but a long-term bull market revival may not be on the cards, yet.
Having clocked a high of $9,070.64 on Saturday, prices again fell back below $8,000 briefly on Sunday before climbing again. CoinDesks’s Bitcoin Price Index (BPI) was last seen at $8,772.
The cryptocurrency has appreciated by 9.70 percent in the last 24 hours, as per data source CoinMarketCap. Bitcoin (BTC) is also close to 40 percent above last week’s low of $5,947.40.
So has the cryptocurrency bottomed out?
To start with, the sharp recovery from lows below $6,000 does indicate a short-term bottom is in place. However, BTC is still down 39 percent on a year-to-date basis. Further, the series of lower highs as represented by the falling trendline is still intact.
While, BTC has a history of rallying to fresh record highs after the relative strength index (RSI) has bottomed out at, or below, 30.00 (oversold region), the daily chart throws some doubt on that pattern today.
The above chart (prices as per Bitfinex) shows:
The situation today looks similar. The RSI has recovered sharply from below 30.00 and BTC is up close to 40 percent from lows below $6,000. So, going by the historical pattern, BTC should rise to fresh record highs above $20,000.
However, the weekly chart indicates it will be easier said than done.
The above chart shows:
Hence, the historical pattern may not occur this time round. That said, BTC seems to have found a short-term bottom, as indicated by the sharp recovery from the lows around $6,000.
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