This is a daily technical analysis of the Coindesk analyst and technician of the approved market Omkar Godbole.
Crypto Bears may want to look closely at the Bitcoin (BTC) models of recent graphics (BTC), which reflect those that preceded the end of the end of $ 70,000 at $ 109,000.
The first model implies the histogram of the average convergence of the average convergence of the average of the graphic (MacD), a momentum indicator used to identify trend changes and inversions. MacD multisgments above or below the zero line generally signal bull or lower offices in the momentum.
However, traders interpret these signals in context with price action. A lowering crossing, for example, needs validation by weakening prices; Otherwise, this could indicate an underlying force and a bear trap. Currently, this seems to be the case in BTC.
The cryptocurrency first dropped after the MacD overthrew negative in mid-February, but quickly found support for the 50-week single mobile average (SMA) in March and has since bounced above $ 90,000. During all this time, the MacD kept below zero.
This model recalls last August and September, when prices maintained the support of SMA in the middle of the persistent MacD Bearish signals. The indicator turned upside down in mid-October, confirming the trend with a rally of $ 70,000 to $ 100,000 by December.
The second diagram involves SMAS of 50 and 200 days. About four weeks ago, these averages formed a lower crossroads – commonly known as the death cross – indicating a long -term potential long -term trend. However, it turned out to be a bear trap, Bitcoin finding support around $ 75,000 and the inversion course.
Recently, the 50 -day SMA has started to go back up and could soon cross the 200 -day SMA, setting up an upward golden cross in the coming weeks.
This model closely reflects the trend of last year: the death cross in August marked a background, quickly followed by a golden cross which sparked an escape greater than $ 70,000 and finally led to a rally over $ 109,000 at the new summits.
In other words, upward volatility could be on the horizon, potentially taking Bitcoin well after the $ 109,000 summit in January.
The graphic models are commonly used to assess the market force and predict future movements. However, it is important to remember that history is not always repeated, and the macroeconomic factors can quickly swing the market departments, which makes the analysis of the graphics far from the flaw.
