TAKING ANOTHER LOOK AT BITCOIN

BITCOIN BOUNCES OFF ITS 50-DAY AVERAGE... A couple of recent messages took a look at Bitcoin as it underwent a downside correction.    We'll take another look today.   The main message is that it's starting to look stronger.  Chart 1 shows Bitcoin in what looks like a normal correction that started nearly a month ago.   The main point on the chart is that it bounced off its 50-day moving average (blue arrow) and has been trying to recover since then.  In addition, its 14-day RSI line in the upper box has found support near its 50 line; while its MACD lines in the lower box may be turning positive.   We'll use hourly bars to study its recent bottom more closely and find some new support and resistance levels.

HOURLY BARS SHOWS POTENTIAL DOUBLE BOTTOM... The hourly price bars in Chart 2 show the recent Bitcoin correction in more detail (each bar represents four hours of trading).    The most important feature on the chart is the potential "double bottom" formed around 30,000 (two circles).   Its price then jumped all the way to 38,600 before pulling back to 32,200 and then turning back up again.  That created a positive pattern of rising bottoms and rising tops which has the look of a potential bottom.   The one-hour bars in Chart 3 show that recent double bottom more clearly with new support and resistance levels.   Bitcoin needs to clear its red resistance line to confirm that a bottom has been formed.