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.
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.
- 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.
- 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.
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