5 min read
For a few months now, Bitcoin has been showing record volatility and the lack of momentum has left crypto traders energized, awaiting signs of another rapid move from the largest cryptocurrency. The general Bitcoin craze has subsided, but what if the current uncertainty results in a strong uptrend? Or will the price of cryptocurrency go down? Currently, Bitcoin is trading at $ 9,300, but sooner or later sluggish momentum could turn into a trend or vice versa. Read the full article for a technical analysis of Bitcoin and make up your own mind.
What is going on with Bitcoin?
Since its low of $ 3,800 in late March, Bitcoin has risen to $ 10,000 in two months (around June 1) and has been fluctuating between $ 8,500 and $ 10,000 since then. June and July have been months of uncertainty and the forecast is manifold, with traders waiting for Bitcoin to break through support or resistance levels.
The previous trend was positive and the price of Bitcoin has doubled. Could the current consolidation lead to asset growth? The overall positive tone of the stock market could set the stage for it, but it is not set in stone.
How to trade Bitcoin?
The recent growth of Bitcoin has created many trading opportunities for crypto traders and current events may well create even more. Let's move on to technical indicators and see what they have to offer. For all indicators, example 30-day price charts with 12-hour interval candles are used.
RSI + Bollinger bands
Topping the list: a popular combination of the RSI bands and the Bollinger. Bollinger Bands indicate that the asset has crossed the upper band and is currently moving higher, while the RSI is signaling that the asset is overbought. This could mean that the initial positive trend could reverse and turn into a downtrend, as asset prices do not normally stay in overbought or oversold areas for long.
Chande Prediction Oscillator
This momentum indicator can be used on its own to predict the future direction of prices. As the chart clearly shows, the indicator has shown price growth for a while, but now it could reverse and fall below the indicator's 0 value. Only time can tell what will really happen.
The ADX shows a bullish cross with the strength of the trend slowly increasing (the ADX line has crossed 20 and is trending higher). Does this mean that Bitcoin could potentially gain momentum and break through the resistance level at $ 10,000 – $ 10,300?
Although the ADX shows a positive trend, other indicators point to a possible decline in the price. Even with the current decline in volatility, BTC remains one of the most traded assets and there is no doubt that soon this asset will surprise everyone with new records. Of course, it is important to study the market well before entering it and checking the signals with other indicators might be a good idea.
Finally, it is always important to note that past performance is not an indicator of future performance. It is important to remember that no indicator shows 100% accurate signals and discrepancies can occur.
NOTE: This article is not investment advice. Any reference to historical price movements or levels is informative and based on external analysis and we do not guarantee that such movements or levels may recur in the future.
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Source: IQOption blog (blog.iqoption.com) 2020-07-23 12:46:59
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