as it would mean that BTC price has printed a higher weekly low and a higher weekly high, which would indicate a change in market structure and might imply a move higher would be in the works. This suggests that momentum is on bulls side likely spurred by anticipation for a pickup in institutional investments soon. For disclosure, the writer holds Bitcoin at the time of writing. His previous analysis suggested that the monthly macd was signaling the bottom of the current bear market, and even correctly called Bitcoins recent bounce off the 200-week moving average yet another forex scalping system indicator traders use to predict price fluctuations in various assets. Related Reading, crypto Analyst Expects Multi-Year Bear Market, Current Bitcoin (BTC) Range Isnt Accumulation.
To call the current bear market a simple correction is quite a bold statement and one that would be met with counterpoints from numerous. Price correction is a reverse movement, usually negative, of at least 10 in a stock, bond, commodity or index to adjust for an overvaluation. Bitcoin is still hitting a roadblock at the 4,100 area but is forming higher lows to signal that bulls are trying harder. This appears to be a bullish.
There is usually an ABC corrective phase expected after such a move, which would test the bulls around. . This means that theres a stronger chance for support to hold than to break. The views and opinions of the writer should not be misconstrued as financial advice. . Stronger bullish momentum could take it up to the.6 level at 4,525 or the full extension just past the 4,700 mark. Following three clear waves higher from the lows at 3400. The 200 SMA is hovering near the very bottom of the rising channel to add to its strength as a floor in a larger pullback. The Mac-D has also crossed bullish and is printing higher highs on the histogram, showing that momentum favors the bulls. Failing to find support around 4000 would see the 50 and 100-day cluster above 3500 as technical support, which must be held if Bitcoin price is will continue to climb higher in the coming weeks. Either way, the monthly macd is a valuable tool for any traders hoping to profit off of trend changes and could help predict the elusive Bitcoin price bottom. It would also be the first time there has been such an occurrence in the bear market. RSI still has some room to go on its move south before indicating oversold conditions. Related Reading, crypto Analyst Expects Strong Bitcoin Bounce, Monthly macd Signals Bottom.