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Bitcoin's (BTC/USD) Rally Could be a Dead Cat Bounce

The price of Bitcoin jumped from around $7310 to about $8444 in under 24 hours.  However, i think this could just be a dead-cat-bounce with weak volume.

BTCUSD 4H Chart

  • From the 4H chart, the volume does NOT impress me and thus leads me to think this could just be a dead-cat-bounce. 
  • There was a bullish divergence, but price has already rallied and resolved that divergence.
  • And still, price is trading under the cluster of 200-, 100-, and 50-period simple moving averages.
  • Price is also below the previous resistance pivot $8595. 
  • So let's not get too excited about this because the overall picture is still bearish in the short to medium-term.
  • However, in the very short-term, there could be some more choppiness with upside towards $9200-$9300.
  • This could be a critical resistance for the bearish scenario to hold. 
  • For the 3/19 session, if price continues to hold under $8400, we can expect further decline heading into the 3/20 session.

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