While the volatility of the crypto market is decreasing, some low-cap coins have been taking advantage of the moment to gain prominence. Such is the case of Bitcoin Gold, which has already gained about 40% during the current day.
At the time of this writing, BTG is trading at $25.24, accumulating a gain of 38.16% in the last 24 hours.
With a market capitalization of $461 million, it ranks 95th in the CoinMarketCap ranking.
The exact catalyst behind the strong rise of this currency is unknown; however, several analysts agree that these types of rallies, of low volume, are usually bullish traps, driven by few traders and investors.
While it may seem high the several hundred million that this capitalization coin has, really in the crypto space this is an easily manipulable size.
Technical Analysis of Bitcoin Gold
Even though we saw a major rally, still for the weekly chart BTG vs USDT it is not too much.
In this time frame we see a strong short/medium-term downtrend, which has remained intact since the beginning of May 2021.
While this drop may seem like a correction after a strong upward momentum, we still do not see a signal confirming that the bottom has already been reached.
At the moment, the price of Bitcoin Gold continues to be locked in a strong downward channel, and the recent rally seems to be a simple respite before continuing with this the previous direction.
Breaking through the top of this channel, yes that would be a good sign for the bulls. With this, new and higher and higher lows would begin to be formed.
Daily chart
In the daily time frame, we can see an excellent behavior, thanks to the uptick that occurred today.
However, after achieving resistance at $31.50, the price began to leave a strong bullish rejection.
Right now the short-term trend is bullish, due to the rebound we are seeing. If the price manages to manufacture a new higher low in the next few hours, then we could continue to see more purchases in the near future.
But as we saw in the weekly chart, it does not seem to be a movement to be too confident about.
All our publications are of an informative nature, so in no case should they be regarded as investment advice.
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