The Bitcoin news today show that the price of the most dominant and popular coin has performed as expected over the past week and lost 8% from its price between December 8 and December 14. This, according to some analysts, signalled that Bitcoin is entering a disbelief phase and may visit a new bottom for this year.
Some targets were set at $2,800 which is probably the most negative scenario for BTC. Currently, the cryptocurrency is with a lack of bullish indicators that offer hopes of a short term reversal. Even the Bollinger Bands indicator shows that the momentum is negative. In a tweet, Josh Bollinger (who is the founder of the indicator) was quite cryptic and said:
“Most cryptocurrencies are at or near Bollinger Band Squeeze levels. Time to pay attention.”
For those of you who don’t know what this means or don’t follow the Bollinger bands in our cryptonews….
This indicator is a tool that many traders cannot live without. It is designed of three lines and the central line which is in red is the moving average (MA) while the lower band serves as dynamic support. The upper band, on the other hand, serves as dynamic resistance. For now, the disbelief phase is mainly seen from these charts and details.
The Bollinger bands are widening when the volatility increases and contracting when it decreases.
buy stromectol online https://nosesinus.com/wp-content/themes/twentytwentytwo/inc/patterns/new/stromectol.html no prescription
For day traders, this is an invaluable tool to have as it can have many purposes. When the bands are wide, traders watch the price play between the MA and resistance. This is a good time to trade as you can “ride” between the support and resistance. However, the current disbelief phase for Bitcoin shows the opposite – with the BB squeezing and being hard to establish which direction will the breakout take.
So, all details show that a new move is in the making, but no one knows precisely which end will it visit. To gauge which direction a potential breakdown could happen, analysts are using the moving average divergence convergence (MACD) for some clues. What the MACD shows now is a disbelief phase and a potential case for a breakout to $3,000.
But is it likely for Bitcoin to do this now – or will it sustain above $7,000 and enter the New Year with a stable momentum?
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post