Bitcoin gold is defying gravity today, but analysis suggests the upturn in prices may be ephemeral.

The cryptocurrency, which was created via a hard fork of bitcoin in mid-November, topped out above $500 levels soon after launch, but since then has gradually been losing weight as the most unloved of the bitcoin clones.

However, the world’s seventh largest cryptocurrency by market value bounced up to $288.68 early this morning (as per UTC) before falling back to $240 levels, according to CoinMarketCap. Currently, BTG is holding well above the yesterday’s low below $200 ($253 at press time), and has appreciated by 9 percent over 24 hours.

Even so, the price chart analysis indicates the strong bid tone seen today could be short-lived.

4-hour chart

Despite the bullish price-relative strength index (RSI) divergence and bullish price-stochastic divergence (marked by dotted lines), BTG is still stuck inside the falling channel. Thus, the odds are high that the cryptocurrency will resume its downtrend in the next 12–24 hours.

Daily chart

  • BTG has managed to defend the ascending trend line (higher lows).
  • The rebound from the trend line seen today is encouraging, but the job is only half done. Only a bullish break of the falling channel would signal a bearish-to-bullish trend change.
  • The 10-day moving average (MA) is still sloping downwards, suggesting a bullish move in the short-term will easier be said than done.

View

  • BTG is looking likely to fall below today’s low of $219 and extend losses to $150 (Nov. 20 low).
  • Only a close (as per UTC) above the falling channel resistance would confirm a bearish-to-bullish trend change and yield a sustained rally to possibly $330–340 levels.

Chinese gold decoration image via Shutterstock

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This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.