Bitcoin’s restorative rally is noticeable as prices rose back to $9,000 but this does not wipe off the longer-term outlook which still faces risks based on the technical charts.
Bitcoin prices dropped to a 5.5-week low of $7,335 on the BPI, a decline which comes as a result of Twitter announcing to ban cryptocurrency ads. Before the announcement, Facebook and Google earlier on made a similar statement.
But the recent decline did not last for long as the cryptocurrency managed to bounce back in a short period of time-thankfully to the bullish relative strength index (RSI) divergence reaching a peak of $8,435 on Tuesday.
Additionally, the Financial Stability Board (FSB), which handles financial control for the G20 economies declined a request for tighter laws of cryptocurrencies yesterday – this news is also one of the determining factors behind the rise in prices.
It is hopeful that by the end of the day, bitcoin prices can hit the $9,000 level.
According to a figure from CoinDesk’s Bitcoin Price Index (BPI), bitcoin is currently trading at $8,154. The international average price is trading at $8,219 which is a 6.5 percent increase.
The sudden increase from the $7,240 low yesterday to $8,467 indicates that prices are expected to drop lower. But for the days to comes, prices are expected to be in the positive lane.