Bitcoin May See Relief Rally, But Bottom Still Elusive

Bitcoin (BTC) may see a corrective rally following losses this week, but it’s still too early to call a bottom, the technical charts indicate.

The cryptocurrency has spent a better part of the last 24 hours trading in a roughly sideways manner in the narrow range of $7,900-$8,400, according to CoinDesk’s Bitcoin Price Index (BPI). As of writing, the BPI is seen at $8,152. Meanwhile, the global average price, as calculated by CoinMarketCap, stands at $8,169 – up 0.15 percent in the last 24 hours.

The consolidation may have brought a little to the battered bulls and suggests a temporary low is in place at $7,676. Further, the shorter duration technical charts (prices as per Bitfinex) show potential for a relief rally.

1-hour chart

Bitcoin has created a bull flag pattern on the hourly chart – a continuation pattern – meaning an upside break to above $8,370 would signal a continuation of the rally from $7,665 (Wednesday’s low) and open the doors for $9,170 (target as per the measured height method).

The relative strength index (RSI) also shows a bull flag pattern, adding credence to the bullish setup on the price chart…

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