Despite the gradual recovery of market activity, the dynamics of search requests for the word “Bitcoin” remains at a relatively low level.
Data: Google Trends
As seen in the chart, bitcoin are looking about again as active as in April 2017, when the price of the asset was less than $2000. Note that the dynamics of search queries is very closely correlated with the price of bitcoin. For example, information about the first cryptocurrency most often searched for in mid-December 2017, when BTC was getting closer to around $20 000.
Since the beginning of February 2019 first cryptocurrency increasingly showing signs of recovery. Currently, BTC is trading at $3836 on the exchange Bitstamp (more than 20% above the December low at $3122).
However, the price of the first cryptocurrency still has not broken the upper boundary of the long term descending channel. To get out of his shackles, bitcoin needs to overcome the resistance zone in the range of $4100-4400.
Weekly channel remains in tact (448 days)
R: 4.1 k-4.4 k
S: 3.7 k 3.5 k 3.3 k
RSI has room to grow.
Is the bitcoin bottom is in?$BTC pic.twitter.com/Lcn5buZcDX
— CoinDesk Markets (@CoinDeskMarkets) March 5, 2019
The relative strength index (RSI) on the weekly chart comes out of oversold, with the indicator has sufficient space for upward movement. This may indicate impending retest key resistance area.
In addition, a three-day Awesome Oscillator chart for the first time since July last year shows a bullish signal:
#BTC/USD Chart 3D #out bitcoins s AO on the 3D chart has flipped bullish for the first time since July 30, 2018. (218 days ago).$BTC pic.twitter.com/xT0SWRys1k
— CoinDesk Markets (@CoinDeskMarkets) March 6, 2019
All of this suggests that the bitcoin might reach the bottom and the path of least resistance in the medium and long term lies to the upside.
Discuss current news and events on the Forum