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<\/p>\nThis is an important week for bitcoin.<\/p>\n
The “King of Cryptocurrencies” has had a rough time lately.<\/p>\n
The price of bitcoin peaked in November just above $65,000 per coin. Then, it dipped as low $35,000 last month.<\/p>\n
Even for a volatile asset such as bitcoin, a 46% drop in two months is going to shake up a lot of traders.<\/p>\n
But last week, bitcoin started to bounce…<\/p>\n
And if it can continue higher this week, then there’s a good chance the “King” will be in the early stages of an intermediate-term rally phase.<\/p>\n
Take a look at this chart…<\/p>\n
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(Click here to expand image)<\/a><\/p>\n The recent decline in bitcoin matches the duration and severity of the decline last summer (red dashed lines). Both downtrends lasted about three months, and both cut the price of bitcoin in half.<\/p>\n Bitcoin started a new rally phase last July when it rallied above all of its various moving averages, and when those moving averages flipped into a bullish<\/a> formation – when the 9- and 20-day exponential moving averages<\/a> (EMA \u2013 red and green lines) crossed above the 50-day moving average<\/a> (MA \u2013 blue line).<\/p>\n Last week’s bounce in bitcoin was strong enough to propel the “King” above all of its various moving averages (blue circle).<\/p>\n
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