Bitcoin hits the bottom: Should you trust this reversal?

After a gruesome struggle in the storm, Bitcoin price appears to have hit the floor. This comes after the market continued to disintegrate on Tuesday with the market capitalization plunging to annual lows around $146 billion. The market is mixed red and green at the time of writing and BTC/USD is up 2.21% on the day. Other cryptos trading in the green include but not limited to Ripple (XRP), Ethereum (ETH) and Bitcoin Cash (BCH) and IOTA (IOT).

The Bank of Thailand governor has made it clear that no cryptocurrencies will be used in the country for a period 3 – 5 years. Veerathai Santiprabhob is reported to have stated this yesterday where he reckoned that although other countries have breakthroughs with virtual currencies, the situation is not as easy as it sounds, especially when it comes to execution. The reasons he gave were the technology itself and the people’s will to embrace blockchain.

Meanwhile, Bitcoin is trading at $4,453 after a slight pullback from the support at $4,200. The crypto retested this support yesterday after a reversal headed for $5,000 failed to break past $4,800. The initial resistance is at $4,600 while $4,800 is a critical hurdle. Bitcoin needs to correct above $5,000 for it escape the frequent declines. Indicators are positive on the hourly chart with the MACD revamping the trend to cross into the positive region while the RSI has maintained position above the oversold, to show that the buyers are still present and buying activity is rising.