Bitcoin looks to have fought off a recent bear market breakdown that saw prices landing just above the yearly low of $5,755.
Bitcoin dropped to $5,858 yesterday at 02:00 UTC, just $103 shy of this year's bottom, according to Bitfinex data.
The suffering has been even worse for much of the altcoin market, some of which have been bleeding out to new yearly lows and seeing drops between 2–15 percent.
Major cryptocurrencies such as ether and XRP dropped by 2.95 and 9.6 percent respectively, before the world's largest cryptocurrency by market capitalization took an about-turn, stabilizing prices and reversing some of the damage from yesterday's chaos.
At time of writing, bitcoin is up 5.16 percent over a 24-hour period, according to CoinMarketCap, and is changing hands at $6,375.Daily chart
Glaring out on the daily chart, the relative strength index (RSI), used to judge the momentum of a trend, has formed a bullish divergence (Aug. 8–14), whereby prices moved lower, but the RSI moved higher creating a 'divergence' from the current bearish setup.
This is this first positive move from the daily RSI since June 23, when the last divergence foretold of the July pullback from the bear trend, which saw bitcoin climb 40 percent.
Further, the MACD (moving average convergence divergence), also used to judge and interpret a trend, is printing bullish signs with the histogram (purple bars) ticking up in favor of the bulls.
The %K and %D lines (blue and orange) representing health and position of a stock are also itching to cross – a bullish signal that only strengthens when viewed from higher timeframes.Monthly chart
A monthly low slightly higher than the yearly low of $5,755 reveals the bears are becoming exhausted in their attempt to drive down prices with declining volume apparent since the middle of May.
It is also worth noting that the monthly RSI is at its lowest since October 1, 2015 – a level t...