Crucial Indicator Shows a Massive Bitcoin Move is Likely Following 30% Drop
[NEWS BLOG]: Crucial Indicator Shows a Massive Bitcoin Move is Likely Following 30% Drop
Over the past few weeks, Bitcoin (BTC) has finally started to slow, establishing $7,000 as support and $7,800 as heavy resistance; the cryptocurrency hasn’t broken above or below those boundaries for over 10 days.
Analysts say that this tightening price action is much like a spring coiling, implying that Bitcoin will soon see a large price movement that may determine this market’s directionality for the next few weeks, maybe months.
But that begs the question, in which direction are analysts expecting crypto assets to move in the near future? And why?
Crypto Market Coiling for Breakout
Popular trader Big Chonis recently noted that Bitcoin’s Bollinger Bands on the one-day chart are starting to consolidate, tightening as prices have stagnated in the low-$7,000s range.
Brief aside: Bollinger Bands are a technical analysis tool “defined by a set of lines plotted two standard deviations (positively and negatively) away from a simple moving average,” as Investopedia explains. These bands measure market volatility.
The last time Bitcoin’s Bollinger Bands were this time, the analyst noted, the cryptocurrency saw strong 15%+ moves. Should history repeat, the cryptocurrency may be primed to see a “much bigger move” than what has been seen over the past few days.
Another popular analyst has corroborated this, noting that BTC has seen a series of lower and lower highs and higher and higher lows over the past few days, implying widespread indecision in this market, and thus impending volatility.
Bitcoin Analysts Optimistic, Not Worried
Firstly, Top trader Cantering Clark recently observed an “uncanny resemblance” between the BTC price action seen over the last few days and the aforementioned accumulation phase. Indeed, as Clark’s two charts seen below show, the Bitcoin price action seen then and now are very similar directionality-wise, with there being drops now where there were drops in late-2018 and such.
The similarities suggest Bitcoin may soon explode higher to break out of accumulation.
Secondly, Bitcoin’s weekly chart just printed a golden cross of the 50-week and 100-week simple moving averages, with the former crossing above the latter. An analyst recently pointed out that the last time this was seen, BTC surged by 75% in the four to five weeks that followed the cross.
And lastly, Adaptive Capital’s Willy Woo has found that Bitcoin’s on-chain momentum has started to trend bullish after a multi-month downturn. With this in mind, he asserted that the “bottom is most likely in,” meaning that any move lower than the $6,500 plunge “will be just a wick in the macro view.”
He added that the unnamed indicator also implies that cryptocurrency investors will start to front-run the impending “halving,” the block reward reduction that will be taking place in May 2020.
OTHER RELATED NEWS
Bitcoin Prepares to Rally to $12,000 as Price Forms Historically Bullish Pattern
After attempting to break decisively past $10,000 for the second time in a week, Bitcoin was rejected, plunging as low as $9,200 for the umpteenth time in a matter of days.
The tepid price action has made some investors cautious that more downside for the flagship cryptocurrency is possible, citing the loss of the key $9,500 support.
Prominent analysts, however, have begun to spot silver linings in Bitcoin’s chart that are suggestive of a reversal to the upside, not an extension to the downside as some analysts have come to expect.
"Bitcoin Readies for Next Leg Higher"
Bitcoin seemingly moves without rhyme - read more.
Ripple Price Signaling More Upsides
Recently, there was a steady increase in bitcoin and Ethereum, which helped ripple in recovering above the $0.2250 resistance. XRP price followed a decent bullish past and surpassed the $0.2300 resistance.
Moreover, there was a close above the $0.2320 resistance and the 100 hourly simple moving average. A new weekly high is formed near $0.2359 and the price is currently correcting lower.
It traded below the 23.6% Fib retracement level of the recent wave from the $0.2259 low to $0.2359 high. An immediate support is near the $0.2310 level.
Besides, there is a major bullish trend line forming with support near $0.2305 on - read more.
Crypto, Crypto, Crypto… CEO Says ‘Crypto’ 100K Times For Homeless Charity
The CEO of a digital currency exchange in the UK has set himself an incredibly bizarre challenge. People have been donating to Pete Wood of CoinBurp as he attempts to raise money for a homeless charity by saying the word “crypto” 100,000 times.
Wood is live streaming the challenge via YouTube with public addresses displayed for both Bitcoin and Ethereum donations. The proceeds of the fund raiser will be gifted to the Centrepoint – the UK’s leading youth homelessness charity.
UK Crypto Exchange Working with Homeless Charity to Promote Cryptocurrency Giving
According to the description on the YouTube live stream of the obscure fund raiser, the - read more.