Bitcoin (CRYPTO: BTC) is trading higher Monday after the crypto market saw a strong bounce back from a severe bearish market of the past couple of weeks. Bitcoin could possibly be making a bounce near a support level it has once found buyers near before.
Bitcoin was up 4.11% at $36,805.37 Monday afternoon at publication.
See Also: Bitcoin Looks Ready For A Reversal, But It Needs To Hold This 1 Key Level
Bitcoin Daily Chart Analysis
- Bitcoin looks like it could be seeing its first bounce after a strong bear market pushed the crypto lower. If it begins to form higher lows it could be beginning to see a reversal. The $30,000 level may hold as support and if the stock begins forming higher lows it may find resistance near $40,000 in the future.
- The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) has been dropping lower for the past few months and sits at 30 on the indicator. This shows the crypto is on the border of the oversold region and has many more sellers than buyers. If the RSI stays in the oversold region the price may continue to trend lower. If it can climb back above the middle line the crypto may start a longer upward trend.
What’s Next For Bitcoin?
Bitcoin may finally be bouncing after seeing a strong green day for the second day in a row. If the crypto can continue to uptrend and form higher lows it may signal a reversal is happening and the crypto is beginning to start a bullish trend. Bears are looking to see the crypto fall and to break below the $30,000 level. The broken support would hint the crypto has not finished the bear market. Bulls are looking to see the higher lows continue and for the crypto to push higher again. Bulls are also looking for a cross above the moving averages and the $40,000 level for sentiment to turn bullish once again.