Bitcoin shows signs of life with move towards $8,600

Despite being battered and bruised over the past month, Bitcoin has recovered from last week’s $7,800 low with a 3.81% 24-hour rally to test $8,600.

The rise in price coincides with mounting political tension between China and the United States, with global stock markets also taking a hit.

Bitcoin, in the same way as gold, has often been touted as a hedge to the existing financial system in that it doesn’t rely on policy changes, interest rates or inflation.

Its nature as a decentralised asset has seen retail investors flock to Bitcoin in recent years, although this, coupled with a lack of liquidity, has increased levels of volatility.

From a technical perspective, Bitcoin experienced a swift rejection from the 200 exponential moving average (EMA) on the daily chart, which is currently residing at $8,700.

Moreover, the 22 EMA has now crossed the 200 EMA to the downside for the first time since April 10, which is indicative of a shift in short-term momentum to the sell-side.

A key indicator to look out for is the seemingly inevitable death cross on the daily chart, with the 50 EMA sloping down dangerously close to the 200 EMA on the daily chart.

The daily relative strength index (RSI) is also at a pivotal point as it resides at 45, although it has surged significantly from its yearly low of 19 on September 25.

Downside targets for Bitcoin remain at $7,800, $7,400 and $5,900, however if price can move above the 200 EMA at $8,700 an extended rally into the low $9,000 region could be on the cards.

For more news, guides and cryptocurrency analysis, click here.

The post Bitcoin shows signs of life with move towards $8,600 appeared first on Coin Rivet.