E Bitcoin Could Start Recovering Soon

Today we will talk about why Bitcoin may have found the bottom and why it may start to recover.

As you can see on the left picture, Bitcoin (BTCUSD) is down since the end of June, but the price action is quite slow and choppy with overlapped wave structure, which suggest a corrective decline, especially if we consider that it's nicely trading within a corrective channel.

With the latest drop at the end of November, BTCUSD hit a very interesting and strong 6500 support, which was actually the final resistance of a bearish triangle in November 2018. In addition, BTCUSD also tested a base channel resistance line that usually acts as a strong support. If we are also considering potential bullish divergence that can be seen in the RSI and MACD indicators, then we should be really prepared for a bigger recovery, at least for a short period of time.
 

btcusdTA

If we take a look on the picture in the right side, we can see a closer view of what is going on. So, we want to show you how BTCUSD looks compared to the very important charts of GBTC (Grayscale Bitcoin Investment Trust) and BTC.D (Bitcoin Dominance).

As you can see, despite the fact that BTCUSD hit new lows, both of them GBTC and BTC.D stayed above previous lows, which might be also an evidence that Bitcoin is not so bearish as it's currently shown. The fact is that now, when BTCUSD hit new lows, there are even more traders and investors in doubt and this is actually the point where "everyone" turns bearish. And, when everyone turns bearish, it's the right and perfect time for a bullish reversal.

Of course, we could be wrong and BTCUSD goes even lower, but according to the corrective structure from June highs, we believe that sooner or later BTCUSD and friends will wake up. We'll keep an eye on the strong resistance line of a corrective channel and once it's broken, this is when BTCUSD will be confirmed bullish.

Also don't forget, Bitcoin topped at the end of December 2017 at 20k, then bottomed again in December of 2018 at 3k and now we are again in December of 2019. Even timing may fit with TA, so will 2020 be green for the crypto market?!

 

Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.

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