Back at $3,500: Has Bitcoin's Price Found a Short-Term Bottom?

Bitcoin prices are back above $3,500, but will they stay? Technical analysis suggests rangebound trading may be on the way.

Sep 15, 2017 at 3:05 p.m. UTC
Updated Sep 14, 2021 at 1:56 p.m. UTC
Layer 2

The sell-off in the bitcoin-US dollar exchange rate (BTC/USD) appears to have stalled, with prices trading at $3,550 at press time.

Over the course of a volatile day, the cryptocurrency fell to a low of $2,980 oversold technical conditions came into play, as we discussed early today.

As per CoinMarketCap, the digital currency has lost 2% over the last 24 hours.

Bitcoin may have found a short-term bottom

The previous article had talked about a potential bullish price RSI divergence on the 4-hour chart. Well, the 4-hour chart is yet to confirm the bullish divergence, however, it has been confirmed on the 1-hour chart.

1-hour chart

CoinDesk - Unknown

The chart above shows the bullish price RSI divergence (lower lows on the price chart and higher lows on the RSI).

The bullish pattern on the 1-hour chart indicates that bitcoin sell-off has run out of steam for now. Prices could test $3,550-3,600, which is the resistance offered by the downward sloping trend line.

Avoid being over ambitious

The bullish setup on the 1-hour chart is valid for a couple of hours. Bitcoin is unlikely to see significant gains above $3,550-3,600 as the Stochastics is close to being overbought.

Watch out for a bullish divergence on the 4-hour chart

CoinDesk - Unknown

The argument that bitcoin has found a short-term bottom at $2,980 would gain more credence if the bullish-price RSI divergence is confirmed on the 4-hour chart.  

Bitcoin is likely to consolidate largely in the range of $3,100 to $3,600. Markets seem to have priced-in the bearish news out of China. Unless there is more damaging news out of China, the range is not likely to be breached to the downside.  

Ferris wheel image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
5 Key Takeaways From a16z's State of Crypto Report

The venture firm is extremely bullish on Web 3.

The venture firm is extremely bullish on Web 3.

CoinDesk - Unknown
2
CoinDesk - Unknown
Regulators Are Paying Attention to UST

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

CoinDesk - Unknown
3
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown
4
CoinDesk - Unknown
Justin Sun Still Thinks Algorithmic Stablecoins Are a Good Idea

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown