Why Bitcoin could rise again soon
Bitcoin’s decline yesterday appears to have been relentless. The leading cryptocurrency has lost support after support after support – although buyers have tried to step in. At the time of writing, BTC is trading for $ 11,700, around $ 700 below its local high. Despite the strong sell-off in a short timeframe, one analyst believes Bitcoin could rise again soon.
Not everyone thinks Bitcoin will ricochet
Despite these technical signals, not everyone is convinced that an upswing is imminent. Michael Van De Poppe, an Amsterdam Stock Exchange trader who is closely following crypto, believes the move on Monday was a clear “fake-out”. This should lead to a correction, he writes: “Well, we got the fake-out, didn’t we? I thought the drop was going to be $ 11,500, but it was close. The general scenario is that we’ll move a little here before the bearish momentum continues. Overall -> all (smaller) alts continue to do well. “
The analyst in question, along with four technical observations, shared the chart below, which underpins his optimistic view. These four technical observations, all of which are related to Bitcoin’s four-hour chart, are as follows:
- The Tom Demark Sequential formed a red “9” candle that is often seen just before an asset makes a bullish reversal. The Tom Demark Sequential forms “9” and “13” candles when an asset reaches a turning point in its trend.
- The Stochastic Relative Strength Index (Stoch RSI) has reached an oversold level and is starting a bullish crossover. This points to a return on the upside, likely towards $ 12,000.