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article imageOp-Ed: Bitcoin has a big day rising to almost $3,700 at one point

By Ken Hanly     Dec 18, 2018 in Technology
Perhaps, Bitcoin has hit bottom and is now in a significant recovery rally. Today, Bitcoin has risen to just short of $3,700 a promising development that could be an indication that there will be a Bitcoin bull market for the short term at least.
CoinDesk analysis
Omkar Godbole has his usual daily analysis of the price movements of Bitcoin (BTC) posted on CoinDesk. It was last updated at 12:14 UTC. He begins his analysis by noting that BTC started at a mere $3,200 early yesterday, an 83 percent drop from the $20,000 on the same date back in 2017.
To the chagrin of many analysts, the BTC price movement had continued often to go down even though there have been extreme oversold conditions for weeks. The investor mood must be very negative as there were no bids flooding in even though the price is now low. However, the price has now jumped to a high for the last eight days of $3,590 at around $12:00 UTC. When Godpole's article went to press, BTC was trading at $3,450 on Bitstamp. This move up has validated the oversold ratings on the 14-week relative strength index (RSI)
Chart analysis
The three-day chart shows a bullish reversal pattern with an outside reversal candle. The price action in the three days to Dec. 17 has engulfed the previous three-day candle's highs and lows. This indicates the six-day time span started pessimistically but ended on a more bullish optimistic note. This is especially so when the pattern came at the bottom of a downtrend.
The bearish-to-bullish trend will only be confirmed if the present 3-day candle, closes above $3,590, the high of the bullish outside candle. The end of the period will be Thursday at the UTC close.
The relative strength index (RSI) has created a bullish divergence , a higher low, in oversold conditions below 30.00. Trading volumes have fallen in the last two weeks showing that sellers are no longer anxious to unload their Bitcoin. Signs are that Bitcoin is likely to be well above $3,590 before the close on Thursday. To add to this, the 5 and 10-day exponential moving averages have hit bottom. BTC could very well surpass the recent lower high of $3,633 within the next few days and move towards $4,000.
Godbole's outlook
Based upon his technical analysis Godbole's view is: "Bullish indicators on both the 3-day and daily charts likely indicate that the tide has turned away the bears, at least for the short-term. BTC looks set to cross the resistance at $3,633 (Dec. 9 high) and could rise toward the psychological hurdle of $4,000 in the next few days. The short-term bullish setup would be invalidated if BTC finds acceptance below Monday’s low of $3,181."
Present situation
24 hours ago Bitcoin was trading at $3,508 dollars according to CoinDesk data. It reached a high since then of $3,691 and a low of $3.429. At 18:40 Central Standard Time it was at $3,663 up more than $155 over the period, a gain of of over 4.4 percent. BTC has already crossed the $3,633 hurdle and is well over the $3,590 mark mentioned by Godbole. Bitcoin could be heading for a significant end of year recovery to bring some optimism to investors after a dismal year overall.
This opinion article was written by an independent writer. The opinions and views expressed herein are those of the author and are not necessarily intended to reflect those of DigitalJournal.com
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