Share this article
Back at $3,500: Has Bitcoin's Price Found a Short-Term Bottom?
Bitcoin prices are back above $3,500, but will they stay? Technical analysis suggests rangebound trading may be on the way.
Updated Sep 14, 2021, 1:56 p.m. Published Sep 15, 2017, 3:05 p.m.
The sell-off in the bitcoin-US dollar exchange rate (BTC/USD) appears to have stalled, with prices trading at $3,550 at press time.
Over the course of a volatile day, the cryptocurrency fell to a low of $2,980 oversold technical conditions came into play, as we discussed early today.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
As per CoinMarketCap, the digital currency has lost 2% over the last 24 hours.
Bitcoin may have found a short-term bottom
The previous article had talked about a potential bullish price RSI divergence on the 4-hour chart. Well, the 4-hour chart is yet to confirm the bullish divergence, however, it has been confirmed on the 1-hour chart.
1-hour chart
The chart above shows the bullish price RSI divergence (lower lows on the price chart and higher lows on the RSI).
The bullish pattern on the 1-hour chart indicates that bitcoin sell-off has run out of steam for now. Prices could test $3,550-3,600, which is the resistance offered by the downward sloping trend line.
Avoid being over ambitious
The bullish setup on the 1-hour chart is valid for a couple of hours. Bitcoin is unlikely to see significant gains above $3,550-3,600 as the Stochastics is close to being overbought.
Watch out for a bullish divergence on the 4-hour chart
The argument that bitcoin has found a short-term bottom at $2,980 would gain more credence if the bullish-price RSI divergence is confirmed on the 4-hour chart.
Bitcoin is likely to consolidate largely in the range of $3,100 to $3,600. Markets seem to have priced-in the bearish news out of China. Unless there is more damaging news out of China, the range is not likely to be breached to the downside.
Ferris wheel image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Coinbase Sees Crypto Recovery Ahead as Liquidity Improves and Fed Rate Cut Odds Climb
The crypto exchange also took note of a so-called AI bubble that continues to go strong and a weaker U.S. dollar.
What to know:
- Coinbase Institutional is seeing a potential December recovery in crypto, citing improving liquidity and a shift in macroeconomic conditions that could favor risk assets like bitcoin.
- The firm's optimism is driven by rising odds of Federal Reserve rate cuts, with markets pricing in a 93% chance easing next week, and improving liquidity conditions.
- Several recent institutional developments, including Vanguard's crypto ETF policy reversal and Bank of America's greenlighting of crypto allocations, have contributed to bitcoin's rebound from recent lows.
Top Stories
