Bitcoin (BTC) is all set to end August with double digit-losses, but a closer look at the price action suggest better times lie ahead for the leading cryptocurrency.
At time of writing, BTC is trading at $6,940 – down 10.7 percent from the month's opening price of $7,727, according to CoinDesk's Bitcoin Price Index.
However, losses would have been much bigger had prices not recovered from the six-week lows below $5,900 seen on Aug. 14.
Read: Bitcoin news: Eminem's Latest Album 'Kamikaze' Features a Bitcoin Shout-Out
Read: Bitcoin news: Eminem's Latest Album 'Kamikaze' Features a Bitcoin Shout-Out
Indeed, the bitcoin market has witnessed a solid two-way business this month. Sellers dominated the first half as the markets reacted to the US Securities and Exchange Commission's (SEC) disapproval of a Winklevoss bitcoin exchange-traded fund (ETF) in late July.
However, by mid-August, the bears had run out of steam and the technical charts were calling for a corrective rally.
Accordingly, BTC picked up a bid and moved above $6,400 in the third week. Notably, the short-term bullish reversal signals gained more credence after the cryptocurrency shrugged off the SEC's rejection of nine other ETF proposals on Aug. 22.
Further, BTC/USD short positions in the futures market hit record lows, signaling the sell-off from the record high of $20,000 set in December likely ended around the psychological support of $6,000. Consequently, the emboldened bulls pushed BTC to highs above $7,000 earlier this week.
So, while BTC is reporting a 10 percent monthly loss overall, the technical charts indicate there is a reason to be optimistic going forward.
According to a chart on Coidesk, (prices as per Bitfinex), a long wick (tail) is attached to the current monthly candle, which is widely considered a sign of demam isu weakness – that is, the bears failed in their attempt to push prices back to the June low of $5,755 and the bulls regained some lost ground.
Read: TRON | What is Tron and how does it work?
View
- Bitcoin's long-tailed monthly candle indicates the long-term bear market likely bottomed out around $6,000.
- A break above the July high of $8,507 would confirm a bullish reversal.
- A monthly close below $6,000 (major support) would signal a revival of the sell-off from the December high of $20,000.
Sumber https://bitcoinometrics.blogspot.comAccording to a chart on Coidesk, (prices as per Bitfinex), a long wick (tail) is attached to the current monthly candle, which is widely considered a sign of demam isu weakness – that is, the bears failed in their attempt to push prices back to the June low of $5,755 and the bulls regained some lost ground.
Read: TRON | What is Tron and how does it work?
View
- Bitcoin's long-tailed monthly candle indicates the long-term bear market likely bottomed out around $6,000.
- A break above the July high of $8,507 would confirm a bullish reversal.
- A monthly close below $6,000 (major support) would signal a revival of the sell-off from the December high of $20,000.