Despite a sharp recovery to over $11,500 today, no one knows the fate of Bitcoin or whether the cryptocurrency will continue to shake and break. The price charts have moved a lot over the past couple of days.
The Bitcoin Price Index (BPI) has climbed 25.9% over the past couple of days after the leading cryptocurrency has had its eight-week low of $9.199 on January 17th. At press time, Bitcoin is around $11,770 and is slowly increasing.
As the world’s leading cryptocurrency, Bitcoin has had a lot of ups and downs but still managed to appreciate around 10% in the past 24 hours. However, investors are not convinced about these movements and think that the overnight recovery is nothing more than a short ‘‘dead cat bounce’’.
The price chart analysis, on the other hand, indicates that only a close above $12,500 levels would add some credence to the entire situation and help Bitcoin rebound from the sub-100-day average levels. This would also confirm that the short-term bottom is in place.
Even though the situation looks similar to the one we saw in late March 2017, when Bitcoin prices moved to their low after going high, everyone remembers Bitcoin as a cryptocurrency that was once swimming in the $20,000 waters.
Still, it is too early to call this a bottom and a threatening situation for Bitcoin. All eyes are on the new increase currently – and we are about to see what it will bring.