After a sharp decline over the past few months, bitcoin prices are finally bouncing back and making what looks like a short term bottom. After hitting a bottom price around $300, bitcoin has finally managed to peak up above the important $400 mark, however whether this relief rally has any legs is still to be seen. There is an immense amount of resistance above the $400 mark and making any sort of sustained movements to the upside will be difficult. However as we know from past moves, bitcoin’s price could experience a rally at any given time if the fundamentals support one.
Bitcoin Daily Chart
The reasons for this short term rally are largely uncertain. Some blogs are reporting that the recent release of the bitcoin documentary called “The Rise and Rise of Bitcoin” has assisted in improving the sentiment which has led to this rally. Others are calling the bottom in bitcoin prices and deem the cryptocurrency vastly undervalued. Also the Google Trends data on bitcoin search volume seems to be inching upwards which could be a good indication that the bitcoin price is about to rise.
Google Trends Data for search term “Bitcoin”
What’s your take on the current position of bitcoin prices? Have we seen the bottom or will this cryptocurrency eventually trend lower as it has been doing for the past few months?