Bitcoin on the path to a major restoration before the new year. Bears will lose their hold.
The main cryptocurrency yesterday was worth about $3200, which is about 83% less than a year ago, at the peak of the bullish rally. However, it is oversold is not the first week, but despite this, signs of a major recovery appeared only now. At the time of writing it costs about $3500, taking off 10%.
This rebound was not only a confirmation of the signals that were fed 14-week relative strength index (RSI), but also was the beginning of a bullish reversal pattern, as can be seen in the three-day schedule.
The three-day schedule
The graph shows that today, was formed a bullish reversal candle, hence, the price recovered to values achieved three days ago. This candle indicates that the bulls are slowly gaining the upper hand. It is usually the first indicates a bullish reversal, which is even more probable given that the candle appeared at the bottom of the descending channel.
However trend change to bullish can be expected only in the case if on Thursday the price will stay above $3590, that is above appeared today candle.
The relative strength index also shows a bullish reversal in oversold territory below 30. Trading volumes decline, saying that bears have run out of juice. The probability of a bullish reversal thus increasing significantly.