Bitcoin (BTC) returned with confidence on Tuesday thanks to new bullish news from PayPal combined with strong indicators on the network.
Candlestick chart for BTC / USD (Bitstamp). Source: TradingView
# Doge420 targets $ 4.20 Dogecoin growth
Cointelegraph Markets Pro and TradingView showed that BTC / USD returned to $ 56,000 during Tuesday’s trading, hours after reaching a local low of $ 53,300.
As volatility continued, the pair still seemed stronger above $ 52,000, a key support area and lower limit seen during the sudden collapse from record highs last Sunday.
The news that PayPal-owned payment company Venmo has started buying and selling cryptocurrency for the app seems to support the recovery. On the one hand, the social media-driven “Dogecoin Day” added to the pressure on Bitcoin’s growth prospects in the short term as money continued to flow into Dogecoin (DOGE) that day.
As the Cointelegraph reported, the goal of the “celebration” is to launch DOGE / USD up to $ 4.20 to coincide with the date and week that Elon Musk of SpaceX promised to “put Dogecoin on literally moon” in its latest rocket launch.
The hashtag # Doge420 was popular on Twitter at the time of writing, with DOGE / USD trading just over $ 0.38, up 420% by chance during the week, but unchanged throughout the day. The American traders have not yet woken up, so it opened up the profit potential later in the day.
RSI indicator tells BTC Bulls to stay true
Back to Bitcoin, traders have over time been closely following an indicator indicating strong support of $ 52,000, and that this week’s fall will finally bounce back.
The Relative Strength Stochastic Indicator (RSI), which reflects the underlying strength of the RSI, suggested that Sunday’s decline already followed a pattern of six previous falls in Bitcoin’s current bullish move.
Therefore, the daily dynamics should now show that BTC / USD has retreated from its recent downturns and will continue to rally.
The TradingView Elliot0511 account, which uploaded a chart illustrating the known behavior, said in the comments that there is no reason to believe that this time will be different. He summed up:
“As we can see from the chart, we have double confirmation that this DIP is almost nearing the end. We can prove this from the fact that, in addition to the price jumping off the main support, we also have RSI Stoch at 0., it happened only 6 times. Since the beginning of the beef market, there has always been a rebound, and I see no reason why it should not be the same this time. The beef market has just started, so there is no need to worry because there is no reason. ”
Annotated chart of RSI, BTC / USD and spot price. Source: TradingView
The popular Twitter account IncomeSharks also marked the price floor and pointed to falling DOGE streams that could help bring Bitcoin back.
He told his subscribers on Tuesday: “If you are willing to buy the high price at these prices, you should have no problem adding bitcoins here.”
“After resetting $ DOGE, we should see a good improvement. There is no point in talking about a price below $ 52,000, unless it does, and I think it will happen.”