The Hidden Bitcoin Trend Line That Could Save The Bull Run
10 Gennaio 2022 - 6:21PM
NEWSBTC
Today, Bitcoin price sank below $40,000 for the first time since
September – a price more than 50% lower than what the market was
anticipating this time of year. While the downside has been
impossible to ignore, the latest sweep of lows has resulted in a
touch of a trend line dating back to the bear market bottom that
could keep the bull market intact a bit longer. Technical Analysis
And Framing The Importance Of Trend Lines When it comes to
technical analysis in Bitcoin, trend lines always matter. When such
lines hold, it is a sign to the market that it is time to reverse.
When they give way, the resulting breakdown and panic is usually
dramatic. For example, losing the horizontal support line of $6,000
in late 2018 immediately resulted in a plunge to $3,000. Once
there, the bear market bottom was put in. Related Reading | 2022:
The Year The Secular Bitcoin Bull Run Could End It was beginning at
that initial bounce that restored hope in Bitcoin, that yet another
trend line started. Rather than a trend line drawn across price
peaks or troughs, this trend line is drawn across extreme oversold
readings on the daily Relative Strength Index. A long-term RSI
trend line could cause a bounce | Source: BTCUSD on TradingView.com
Now Or Never: Bitcoin Bull Run RSI Trend Line Must Hold As Bitcoin
price swept below $40,000 on BTCUSD daily charts, the Relative
Strength Index tapped a long-term trend line. The line itself has
withstood the bear market bottom, Black Thursday, and the 2021
selloff down to $28K. Does this latest move down have enough
momentum to break through the support line? Or will it hold once
again? The reading alone on the RSI suggests conditions are highly
oversold – the fourth most extreme since the bear market bottom.
Fourth time is the charm? | Source: BTCUSD on TradingView.com
During the last bull market, there were four total touches of the
daily RSI trend line. The fourth was the final touch before the
peak of the bull market (green dotted line). Related Reading |
Blast From The Past Bitcoin Fractal Could Suggest A Record Reversal
Is Near The same trend line, once breached, is what led to Bitcoin
falling sharply from $20K to under $6,000 in less than one month in
early 2018 and kicked off the bear market (red dotted line).
Bitcoin is once again at the trend line. Will the fourth tap
prepare the market for liftoff, or will the line break down and a
new bear phase begin? It could be now or never for Bitcoin bulls.
Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC
Telegram for exclusive daily market insights and technical analysis
education. Please note: Content is educational and should not
be considered investment advice. Featured image from
iStockPhoto, Charts from TradingView.com
Grafico Azioni Amp (COIN:AMPUSD)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Amp (COIN:AMPUSD)
Storico
Da Apr 2023 a Apr 2024
Notizie in Tempo Reale relative a Amp (Criptovaluta): 0 articoli recenti
Più Amp Articoli Notizie