Bitcoin comes out of deep oversold and is ready for growth, analysis of the expert CoinDesk

The price of the first cryptocurrency comes out of deep oversold and can soon test resistance at around $ 4,400, according to analyst CoinDesk Omkar Godboul.

Despite the bear market, sellers appear to have run out of $ 3,500. This opened up the possibility for some bitcoin price recovery. So, now BTC is again testing the psychological mark of $ 4,000.

According to CoinMarketCap, over the past 24 hours, digital gold has grown by more than 8%, pushing up prices of less capitalized assets:

Daily chart BTC / USD

The long shadows of the previous three candles indicate a failed attempt by bears to push the price below $ 3,500. You can also note the implementation of bullish divergence and exit from the oversold zone on the RSI indicator with a period of 14.

Four-hour chart BTC / USD

Bitcoin managed to overcome the resistance of the downward trend line (highlighted in yellow). It happened against the background of bullish divergence on the RSI.

Now the bulls look determined to gain a foothold, finally, above $ 4000. However, they still have to overcome obstacles in the form of the upper boundary of the downward channel and still directed downward EMA with periods of 50, 100 and 200.

Thus, there were chances that in the next day or two the "grandfather" would still reach the mark of $ 4,400. Neutralize the recovery in demand can only fall in the price of BTC below $ 3,500.

Earlier, Omkar Godboul drew attention to the fact that for the first time since October 2015, the price of bitcoin was below the key support line in the form of EMA 21 on the monthly chart.