NYXBT Bitcoin Index Daily Chart; Oversold; Falling Wedge; Positive Divergence; Lower Band Violation

Bitcoin proponents have been beaten this year. The sky was the limit for bitcoin at the end of last year into January but that is when the wheels fell off. Bitcoin trends lower ever since.The negativity around cybercurrencies is rampant. The taxi cab driver said he would never touch bitcoin even with a 10-foot pole.

As is typically the case, the height of negativity usually hints that a recovery is on tap. The daily chart reinforces this idea. The green lines show the overbot conditions, falling wedge, and universal positive divergence across all indicators which are bullish signals. Bitcoin tagged the lower standard deviation band for the last six weeks so the middle band at 6852, and falling, is firmly on the table. 

Bitcoin is set to begin a recovery bounce. The weekly chart is showing mixed indicators with both positive divergence and weak and bleak behavior. This hints that the charts are agreeable to a nice recovery bounce in the daily time frame but then weakness will likely reenter, say, about 2 to 4 weeks down the road after the near-term bounce occurs. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Wednesday, 7/4/18: Bitcoin is at 6690 receiving the possie d bounce and tagging the middle band.