Does this bitcoin rebound have longevity?
Bitcoin has been rallying sharply over the past two weeks, gaining around 40% from the USD$6000 mark. However, with the creation of lower highs throughout 2018, there is a risk that we will see another turn lower in the near future.
Bitcoin has been on the rise over the past fortnight, with the price pushing through trendline resistance to reach the 61.8% retracement. That rally through the trendline certainly signals a slowdown in the decline of the cryptocurrency, yet the question over whether this marks the bottom remains to be answered. The downtrend that has been in place throughout 2018 remains, despite this trendline break, yet it is clear that the rally through USD$7776 paved the way for a short-term period of upside.
The daily chart highlights that we have seen a substantial amount of support at USD$6000 throughout this year-to-date. Thus it was no major surprise that the price of bitcoin managed to reverse higher from that level, driving a 41% gain from the June lows.
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