Yahoo Finance Bull Reversal? Bitcoin Sees Biggest Single-Day Price Gain Since April
Bitcoin (BTC) is teasing a short-term bullish reversal, having just recorded its biggest single-day gain in seven months.
Prices closed yesterday (UTC) at $4,257, a 24-hour increase of 11.43 percent and the highest daily gain since April 12, according to CoinMarketCap.
Back then, the cryptocurrency was trading above $6,900, 38 percent higher than the current price of $4,345. Interestingly, the 13 percent price gain witnessed that day had been preceded by a 45 percent drop and a minor bout of consolidation.
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More importantly, the big bullish move of April 12 marked the beginning of the rally, which saw prices rise to near $10,000 by early May.
Similarly, yesterdayâs 11 percent rise had been preceded by a 44 percent drop to 14-month lows below $3,400. Further, positive signs are building up on the short duration technical charts. As a result, bitcoin could be in for a short-term bullish reversal, similar to the one witnessed after April 12.
Daily chart
Yesterday, BTC created a big bullish candle, validating the bearish exhaustion signaled by the previous three long-tailed candles. With the strong move higher, the 14-day relative strength has moved back into undersold territory above 30.00, confirming a bullish divergence (higher low on RSI).
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So, it’s possible history is about to repeat itself with a bullish move toward $5,000.
Notably, the bullish case looks stronger than it did seven months ago. The RSI hit record lows during the recent sell-off, signaling extreme oversold conditions, as opposed to readings above 30 registered before April 12.
4-hour chart
Over on the 4-hour chart, the cryptocurrency is probing the falling channel resistance of $4,320 at press time, having confirmed a double bottom breakout with a move above $4,120 earlier today.
Notably, the bull flag breakout seen in the 15-minute chart is signaling that the falling channel hurdle could be breached in the next few hours. The breakout, if confirmed, would only bolster the already bullish technical setup.
View
BTC’s 11 percent price gain has likely turned the tables in favor of the bulls.
A falling channel breakout on the 4-hour chart, if confirmed, would open the doors for a test of psychological resistance at $5,000.
The short-term bullish case would weaken if a convincing break above the 10-day exponential moving average (EMA), currently at $4,293, remains elusive for the next 48 hours.
Disclosure: The author holds no cryptocurrency assets at the time of writing.
Bitcoin image via CoinDesk archives; charts by Trading View
