- Bitcoin price touches intraday high of $7,668 Wednesday.
- Earlier in the day, BTC/USD bottomed at $6,847.72, a six-month low.
- Cryptocurrency markets recover north of $200 billion.
Bitcoin’s price reclaimed the $7,500 handle on Wednesday after plunging to its lowest level in over six months.
BTC/USD Stages Relief Rally
Wednesday’s roller coaster session saw bitcoin’s price breach $6,900 for the first time in over six months. The largest cryptocurrency would eventually find bottom at $6,847.72 on Bitstamp.
A quick relief rally would ensue, sending BTC/USD to a high of $7,668 for a trough-to-peak gain of 11.3%. The largest cryptocurrency was last spotted around $7,617, having gained 6.2% for the day.
Bitcoin has bounced off extreme overbought levels but remains in a descending channel that began in late October. An RSI reading of around 40 suggests further downside pressure is possible.
While it’s too early to declare a shift in sentiment, bitcoin’s price formation looks like a “textbook inverse head & shoulders,” according to Mark Yusko of Morgan Creek Capital. This formation implies that upward movement is likely once the final trough is made.
Bitcoin’s price action exerted a gravitational pull on the wider cryptocurrency market, as altcoins and tokens rallied from recent lows. Cryptocurrencies recovered more than $15 billion in lost market cap, reaching a high near $206 billion, according to CoinMarketCap.
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