Likely more volatility ahead
Updated
The price of Bitcoin was relatively steady over the past three days. In the meantime, technical indicators like RSI, MACD, and Stochastic stayed bearish on the daily time frame, and the 20-day SMA kept approaching the price. As for the weekly time frame, Stochastic and RSI continued to develop bearish structures, indicating that a trend of higher degree is turning increasingly bearish. However, there is one thing that caught our attention and which is quite bullish. It is the growing number of Bitcoin wallets with balances exceeding 1,000 tokens (based on the data published by LookIntoBitcoin). This trend suggests the accumulation of Bitcoin among big players, which often precedes significant moves to the upside. As a result, we think a volatile move to either side is possible in the next few days.
Illustration 1.01
Illustration 1.01 shows the daily chart of RSI. A breakout above 30 points will be bullish and likely accompanied by a rebound (or even a potential trend reversal) in the price of Bitcoin.
Technical analysis gauge
Daily time frame = Bearish
Weekly time frame = Bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Illustration 1.01
Illustration 1.01 shows the daily chart of RSI. A breakout above 30 points will be bullish and likely accompanied by a rebound (or even a potential trend reversal) in the price of Bitcoin.
Technical analysis gauge
Daily time frame = Bearish
Weekly time frame = Bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Note
Bitcoin retraced toward its 20-day SMA; if it manages to hold above this level, it will bolster the bullish odds in the short term.
Disclaimer
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