Although it has seen a so-called "death signal" over the weekend, the Bitcoin (BTC) is now looking for gains above the $ 7,000 barrier.
The highly feared technical index (the bearish cross between the 50-day average and the 200-day average) was confirmed over the weekend, but - as expected by "CoinDesk" - overbought conditions seemed to be placing a floor below the Betcouin prices.
As of the time of writing, the CoinDesk BPI was seen at $ 7,040 after recording a 54-day low of $ 6,443 on Sunday. At the same time, the digital currency was seen trading between individuals at $ 7,060 on the "Bitfinex" trading platform - up 9.88% from the previous day's low of $ 6,425. The recovery is largely in line with the historical pattern, indicating that the Betcairn tends to restore equilibrium every time the RSI falls below 30.00.
As seen on the daily Curve prices in "Bitfinex", the "RSI" index fell to 30.00 on Friday, indicating oversold conditions. In addition, the death case was confirmed on Saturday, but did not cause much damage to the bitcoin price.
For example, the 50-day moving average turned neutral a week ago and remained neutral after the bearish cross, validating the RSI's daily argument, which says that the "death signal" That individuals are overbearing in selling bitcoon. The 50-day moving average can collapse before and after the intersection to bring in many technical sellers. Moreover, the digital currency has succeeded in defending the main upward trend line seen in the weekly curve.
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Overview
Bitcoin looks and it locked down temporarily at $ 6,425. A break of $ 7,100 could result in higher prices to $ 7,600. Further gains can not be ruled out, but this is likely to happen after the 5-day and 10-day average bias is bearish. On the negative side, the $ 6,425 level is seen as immediate support, which if breached will allow a retest of the February decline at $ 6,000. However, downtrends will face a tough time picking up support at $ 6,425, which is favorable to the short term conditions for the sell-off.