BITCOIN’S REPRIEVE MAY BE SHORT-LIVED

After dropping in excess of 40% in the last two weeks, with very little news to drive the move, Bitcoin is trying to build a base around the $3,500 - $3,700 level in the last three days. While the longer-term chart set-up remains negative - with a test of $2,970 likely - in the short-term the charts are showing the crypotcurrency heavily in oversold territory – RSI indicator at the bottom of the chart - which may produce a relief bounce higher. The last three daily candles are showing higher lows, a positive for Bitcoin bulls, and need to be built upon if prices are to sustain any move higher.
Longer-term Bitcoin remains negative, with the September 2017 low at $2,970 the current target. If this level is broken decisively, the July 2017 swing-low at $1,790 becomes the next level of support.