Are Bitcoin And Ethereum Bottoming?
Bitcoin and Ethereum had some interesting action today that may signify a bottom is approaching. Early in the session, Bitcoin undercut its' prior low and breached the $30,000 level. After doing this, it rallied off the lows on heavy volume. In addition, it showed some bullish divergence action on the MACD and RSI indicators. This is the first positive signal we have seen in Bitcoin since it lost its' 50-day moving average. While there is still a long way to go until a new high is made, this is a constructive step in the right direction.
Ethereum also has a productive day as it showed supportive action off its' 200-day moving average. Again, this may not be a bottom, it is is a positive sign and a step in the right direction.
While I currently do not own Bitcoin or Ethereum, I always keep them on my radar as things can change very quickly. Should we get a strong rally in the crypto space, I will look to start opening up positions. If trades start to work, I will slowly start to increase exposure. There really is no need to buy the exact bottom. It is often much safer and profitable to average up as positions start to work and provide some conviction that a bottom is truly in.
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