Bitcoin price surges 6 percent following scary drop to sub-8k levels

After a bad fall on Sunday, when the price of Bitcoin crashed from $8183 to a scary $7,793, the leading cryptocurrency by market cap is now slowly nursing itself back to health.

Bitcoin, at the moment, is trading for around $8,300 per coin.

This move signals a cancellation of the bearish trend, at least in the hourly candles, although the outlook is still not overly encouraging—even in the medium term.

Except for a few brief price drops like yesterday's, Bitcoin has remained in a kind of horizontal channel between $8000 and $8400, with a low trading volume, following the price crash on September 24. 

This means that the market has found a particular point of equilibrium in which there is no apparent domination of buyers or sellers, and any unusual movement or event can cause the next trend (whatever that might ultimately be).

For those who are into day trading or scalping, the accelerated increase in Bitcoin’s price is a reason for both excitement and caution: While it’s possible that the price may continue to increase before the next correction, the asset’s high relative strength index (RSI) is a sign that the token is overbought.

And, if evaluating prices based on daily candles, the threat of a “death cross” remains. This would imply the beginning of a sustained descent to new lows; however—at least until now—the bulls have beaten back the likelihood of this scenario. 

This rally, of course, also influenced the rest of the markets. At the moment, about 80 percent of the top 100 cryptocurrencies by market cap are in the green, with Chainlink (LINK) setting the tone with an increase of more than 11 percent, and Ripple’s XRP spiking by nearly 10 percent.

Overall, a nice way to start the week for crypto traders.