Bitcoin’s price still continues to bounce around the $3,000-4,000 range, failing to provide a convincing upswing to signal a definite new trend. However, the price has seen a bit more movement lately than during the prior days of intense consolidation.
Let’s see what else the charts have to say on the matter:
Bitcoin’s weekly chart (each candle represents one week) shows price in a possible support and resistance range (white lines), since bitcoin hit its most recent bear market low in the $3,100 range.
If price does not make new lows, the new trend could possibly be underway. Future confirmation will be very telling.
Bitcoin’s daily candle chart shows price noticeably above the 50-day moving average (MA), and even looking to stay above the 100-day MA. However, a recent wick a couple of days ago briefly poked through the 100-day MA before bouncing back above. Several days ago, bitcoin almost tapped the 128-day moving average.
Volume still appears to be lower than numbers posted back in December and parts of November.
Over the past few weeks, Bitcoin’s 4-hour chart appears to show periods of consolidation, followed by strong price movements, as seen by the tight Bollinger Bands. The Bollinger Bands are currently coiled fairly tightly, possibly indicating strong volatility might eventually be coming. Nevertheless, the price move could take place in either direction.
The two green circles show long wicks, which might indicate stop-loss runs or price fakeouts.
Earlier this week, Crypto Insider reported on bitcoin’s stark move downward in price, and on the thoughts of YouTube influencer Nicholas Merten (DataDash) on the situation. Merten pointed to bitcoin’s possibly thin order book, which might have been one of the catalysts allowing such a price move to occur the way it did.
*This article is based on opinions, speculations, and interpretations from the author and others, and is not in any way financial advice. Writing about price levels is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever. Proceed only at your own risk.