Bitcoin has regained much of the ground lost in recent days trading. The latest bitcoin recovery was highlighted by the bitcoin price moving beyond $13,000, signalling a market return to positive territory once more.
The world’s largest cryptocurrency had been performing well until prices met stiff resistance earlier this month. The bitcoin pull-back to $9,614 was then seen as a correction to rallying prices.
Now, with bitcoin sliding back above $13,000 on Wednesday, the cryptocurrency has regained as much as 85% of the ground it had lost.
Trading has remained volatile, though, and the time of writing, the bitcoin price had since fallen back to $11,529.
According to analysts, trade over the next 24 hours could provide crucial insights into whether the market is preparing for another rally. Alternatively, bullish exhaustion could potentially start to give way to another bear slide.
CoinDesk analyst Omkar Gobole said that a deeper decline could be on the cards if trading remains volatile throughout the day.
“BTC continues to chart bullish higher lows and higher highs on short duration charts, favoring a retest of the recent high of $13,880. A move to $13,880 may take time if prices drop below key support at $12,538. That would allow a deeper pullback to $12,000. A high-volume UTC close below $12,000 would invalidate the short-term bullish setup, although that looks unlikely.”
Pointing to the relative strength index, Godbole said there was still good reason for bitcoin bulls to be optimistic. Especially about the near-term prospects for the cryptocurrency.
“The 14-day relative strength index (RSI) is reporting bullish conditions with an above 50 print, and the Chaikin money flow indicator is holding well into the positive territory, indicating sustained buying pressure. All-in-all, BTC appears on track to test and possibly break above the June 26 high of $13,880.”
The world’s largest cryptocurrency by market cap, bitcoin has returned to strength through the first half of 2019. That follows challenging trading throughout 2017.
Some analysts are eyeing a return to the highs of late 2017 by the end of this year. However, it remains far from certain bitcoin will reach those heights any time soon. Depending on the turn prices take next, BTC could well continue heading in the right direction for bitcoin bulls to capitalize.