Bitcoin has recouped nearly 13% of its value after falling to a new low in 2018. The question remains is the current rally merely a recovery or a reversal of the uptrend?
Market Overview
After reaching the bottom last week, Bitcoin seems to have gained sufficient momentum in the short term to try to reverse the downward trend. However, it is still not specified at this time. The outlook for the beta is still very bearish as the currency has experienced a nearly 70% decline from its all-time high, and most long-term indicators remain biased towards the downside.
Bitcoin remains bearish, and as usual, after a positive candle emerges outside of the daily frame, the currency tends to trade somewhat erratically during the 48 to 72 hours before ending any upside or downside move. Fortunately, this time it changed to the top, and the main currency rose to $ 6,681 on July 2.
Graph for 4 hours
The daily chart
At the time of this writing,Bitcoin seems to be testing the resistance of the bearish triangle at $ 6,767, and may continue to reach $ 7000, and the 50-Day SMA at $ 7,100 in the near term.
Although this short-term reversal is good and will make traders yell cheerfully, long-term indicators remain biased towards the downside, and the uptake is likely to go beyond the 50-day moving average and will continue the bearish trend towards $ 5500-5000.
Bitcoin is looking for a price target
It seems that Bitcoin will test the bearish triangle at $ 6,767, but it could gain at the 50-day moving average ($ 7,100). Volume is still the main indicator of these analyzes, and any positive breakout should be supported by the purchase of large, sustainable volumes.
Again, the short term general currency situation remains positive provided it remains above the neckline at $ 6.250, which represents the last double bottom. If it falls below that price, the decline is likely to resume around $ 5,500-5,000.
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