Βitcoin – BTCUSD price rebounds today after yesterday’s correction enhancing the positive outlook for bitcoin and the rebound from $6,534 from six-month lows is intact. The sharp drop in the crypto market started last Friday after the warning from People’s Bank Of China that cryptocurrencies remain unauthorised, illegal public financing and investors must be careful on cryptocurrencies. The warning came as the PBOC is being rumoured to be on its way to launching its cryptocurrency while conducting high profile raids on several offices of suspected cryptocurrency exchange offices in its jurisdiction. Bitcoin has lost over 18% of its value the last month while gains over 100% since the beginning of 2019.
Many analysts believe that the recent sell-off in cryptocurrencies creating more fundamental issues for bitcoin as the cost for mining bitcoin estimated to around 6,500 – 6,800 a drop in bitcoin price below that level might push crypto traders to sell their bitcoin holdings before start losing money.
BTC accounts for the 66.5% of the total cryptocurrency market as the capitalization continues the recovery to 135.72 billion the volume today is 18.24 billion. The capitalization of the 100 biggest cryptocurrencies stands at 204.23 as Ethereum (ETHUSD) rebounds above $150 and Litecoin (LTCUSD) adds 0.81% at $47.26
Bitcoin Technical Outlook
BTCUSD holds above the resistance at $7,400 and attempts to regain the 7,500. What might cancel the recent bearish trend is if bitcoin manages to settle today above the daily high at $7,524, in that case, a move to Wednesday’s high at 7.645 will be the next target. Bulls need to clear the 50-day moving average at $8,388 to regain control of the bitcoin trend.
In our daily bitcoin chart, the RSI 14 index consolidates around 38.56 level having escaped from deeply oversold levels. Overall there is an improvement in crypto markets sentiment this week as cryptocurrencies rebound from six-month lows
On the other hand, first support for bitcoin (BTCUSD) stands at $7,411.17 the daily low while the $7,000 mark is a critical support zone. If a downside break occurs below the $7,000 mark, BTCUSD could resume its decline to $6,534 recent low. Furthermore, to the downside, we have to go back to May for the next support that stands at $5,705.
All in all even the short term momentum appears to be more positive today, the longer-term technical outlook is still bearish, and if the bitcoin fails to climb above the resistance levels that I mentioned above, then a move down to recent lows looks possible.