Bitcoin (BTC) is up more than six percent for the day following a bullish EMA crossover on the 4H timeframe. The above 4H chart for BTC/USD shows that the price rallied towards the previous resistance when the 10 EMA crossed above the 21 EMA. As expected, this rally was short lived and the price faced a strong rejection t $4,072. That being said, it has given the bulls more confidence to stage a sustained rally from here after a brief consolidation. This does seem like to be a positive development after a period of aggressive price drops. However, if Bitcoin (BTC) fails to break this resistance and falls back to the previous support, it risks falling towards the yearly low.

RSI for BTC/USD seems to have topped out on the 4H time frame and is now due for a retracement. As long as the RSI keeps forming a higher high and a higher low, the bulls remain in charge. However, if RSI breaks the ascending channel, Bitcoin (BTC) is very likely to form a new yearly low. Throughout Bitcoin (BTC)’s trading history, we have seen major moves at turning points that are often misleading. Those moves also comprise of some deliberate stop hunting. So far we have seen nothing like that which means there might be some blood to come. The EMA crossover on the 4H timeframe might be a sign of temporary relief but if the price fails to break above the resistance, it would ultimately result in the EMA alignment turning bearish again.

Bitcoin (BTC) has ample room for a retest of the previous low or even for making a new low. However, it would be extremely risky to bet on it. That is because the correction is already complete for the most part and the big picture points to a slow but steady recovery ahead. We may not be able to see Bitcoin (BTC) reaching anywhere close to its previous all-time high during 2019 but we are also not likely to see such low prices for accumulation again. For long-term investors, this would be the most ideal time to start buying. Even if the price falls from current levels it will be a few hundred dollars which is not going to make much of a difference in the grand scheme of things.

The weekly chart for BTC/USD shows a four years long trend line that extends from September 2015 to September 2019. In order for Bitcoin (BTC) to maintain its long-term uptrend, it has to hold this trend line. So far, the price has tested this trend line four times and has not breached it once. RSI for the above chart is also signalling a reversal. If Bitcoin (BTC) closes the monthly candle above this trend line, it will make the bulls more confident and then we can truly call this the bottom and expect the price to recover from December onwards