Bitcoin: This Indicator Flashes Green For The First Time Since January 2024
14 Maggio 2024 - 11:00PM
NEWSBTC
According to the candlestick arrangement in the daily chart,
Bitcoin is moving inside a range. BTC is also down roughly 20% from
the all-time high at spot rates. Though the series of lower lows
posted in the past few trading days is bearish, one analyst
is upbeat, expecting an encouraging recovery in the sessions
ahead. This Indicator Flashes Green: Time For Bitcoin To Rally?
Taking to X, the analyst notes that the 50-day Williams %R
oscillator is turning from oversold territory, signaling that the
bear run could end. Historically, the indicator has accurately
signaled buying opportunities whenever it turns from oversold
territory. The Williams %R oscillator is a crucial technical
indicator chartists use to assess momentum and identify potential
oversold or overbought conditions. When the indicator falls below
-80, it suggests the asset being analyzed is oversold, potentially
indicating a buying opportunity. Conversely, when it rises above
+20, it may mean that the asset is overbought, prompting the trader
to adjust their strategy accordingly. Related Reading: Newbie
Bitcoin Whales Buying 200,000 BTC Per Week, Data Shows Since the
beginning of 2023, the analyst observes that the 50-day Williams %R
oscillator mapping Bitcoin prices has dipped into oversold
territory on four occasions. Notably, each time the oscillator
reversed from this zone, BTC prices rose in tandem. Now, with
the Williams %R oscillator returning from the oversold territory
roughly ten days ago, the analyst is optimistic. It returned from
the oversold territory in January 2024, preceding the bull run in
Q1 2024. If past performance is anything to go by, BTC is
likely ready for a leg up. Considering the extended sideways
movement and lower lows since prices peaked in mid-March 2024, this
development will be a massive boost for the coin. Does BTC Stand A
Chance After Extended Consolidation? The asset has become more
dynamic since the approval of spot Bitcoin exchange-traded funds
(ETFs). Broader market conditions, such as regulatory changes,
macroeconomic trends, and investor sentiment increasingly influence
it. Subsequently, this dynamism can impact the accuracy of
technical indicators like the Williams % R oscillator. This tool
lags and doesn’t factor in events in real time. Therefore, while
the oscillator has been reliable in the past, it may not
necessarily accurately predict the future cycle. For this reason,
the coming days and weeks will be crucial for Bitcoin. If the price
breaks out of its current range upwards, it could lend credence to
the bullish interpretation. Related Reading: Brace For Impact: Mt.
Gox Set To Inject 142,000 BTC And 143,000 Bitcoin Cash Into The
Market- Here’s When Currently, BTC is in a narrow range. According
to the daily chart, support is at $56,500, and resistance is at
$66,000. Feature image from DALLE, chart from TradingView
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