BTCUSD: too early to call a bottom

BTCUSD: too early to call a bottom

Bitcoin / Dollar BITFINEX:BTCUSD


Bitcoin             price has recovered strongly on Tuesday, with the price jumped from fresh 1.5-month lows around $7,000 to the $7,500 area. Today, the coin is trading flat on the day and struggles for direction amid relatively low trading volumes.

There were two reasons behind the recent short-term price spike. The first driver is the technical one. The $7,000 area represents a strong psychological support which attracted buyers at interesting levels. The second catalyst is probably the political crisis in Italy             which fueled a sell-off in the global financial markets and thus triggered demand for the decentralized currency.

Despite the local rebound, it’s too early to call a bottom as the bearish trend remains rather firm, and trading volumes are quite low lately. The price needs to confirm a break above the $7,500 figure in order to overcome the next intermediate resistance of $7,650. As long as BTCUSD             remains below this region, the $7,000 level is at risk.