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Bitcoin’s Low-Time Frame Chart is “Getting Interesting” — Here’s Why

Published

3 Wochen ago

on



  • Bitcoin has been holding strong above $19,000, which is a positive sign for its short-term outlook
  • The strength seen by the cryptocurrency as of late comes despite it seeing multiple strong rejections at its all-time highs
  • The selling pressure laced throughout the mid-to-upper $19,000 region has been too much for bulls to handle
  • However, buyers have been able to set a series of higher-lows following each rejection here, which is an incredibly bullish sign
  • One trader is now pointing towards a few trends on its low-time frame chart as reasons why upside may be imminent
  • There is one crucial level that the cryptocurrency needs to first break for it to see any serious gains in the days and weeks ahead

Bitcoin and the rest of the crypto market have been caught within a bout of consolidation as of late.

For BTC, this has favored bulls, as the cryptocurrency has been able to hold strong above $19,000 without facing any sustained rejections.

That said, it has yet to test the key resistance between $19,300 and $19,400, with the selling pressure here potentially being enough for the cryptocurrency to see some massive losses in the near-term.

One trader believes that a break above here could be imminent, noting a few factors that support this notion.

Bitcoin Shows Signs of Strength as Consolidation Continues 

At the time of writing, Bitcoin is trading down just over 1% at its current price of $19,170. This marks a serious decline from the cryptocurrency’s all-time highs of $19,800 that have been tapped on a few occasions as of late.

The selling pressure here has sparked multiple intense rejections, but the fact that BTC is currently consolidating firmly above $19,000 is a positive sign that could work in bulls’ favor.

Trader Claims Bitcoin’s Low-Time Frame Chart Signals Upside is Imminent 

While pointing to Bitcoin’s low-time frame chart, one trader explained that there are a few indications that a breakout is imminent.

He is looking towards $19,300 as a key level that must be surmounted, noting that bears will likely target $18,100 – should BTC see a breakdown.

“BTC / USD: LTF getting interesting as we squeeze against resistance with price continuously rising with this LTF trendline support, expecting this to break this week… Bulls need to flip $19,300 to continue bullish momentum, bears looking for drop to $18,100 on break down.”

Image Courtesy of Cactus. Source: BTCUSD on TradingView.

How it responds to any imminent tests of this level should shine a light on bulls’ underlying strength.

Featured image from Unsplash.
Charts from TradingView.





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Bitcoin

‘Bullish year ahead’ — Bitcoin primed for Q1 2021 gains, strength index suggests

Published

3 Minuten ago

on

Dezember 29, 2020

By


The monthly relative strength index (RSI) of Bitcoin (BTC) shows the dominant cryptocurrency is primed for another rally.

Is 2021 an ideal time for a Bitcoin rally?

The RSI is a momentum indicator that measures whether an asset is overbought or oversold. When the RSI surpasses 75, it signals the asset is overbought, and when it drops below 30, it means the asset is oversold.

A pseudonymous trader known as “Crypto Capo” noted that the monthly RSI of Bitcoin is set to close above 80. Historically, when this has happened, BTC has saw a strong rally afterward.

Although the monthly RSI of Bitcoin is above 80, which is technically oversold, BTC’s RSI tends to become oversold for prolonged periods during a bull cycle.

The monthly RSI of Bitcoin. Source: Crypto Capo

Hence, traders often refer to an oversold RSI on a high time frame chart, like the monthly candle chart, to forecast an extended rally in the short term to medium term. The trader said:

“Monthly candle is about to close above 80. When this happens, bullish trend continues, with an avg. return of 1010.87%. Each cycle is shorter.”

However, the trader emphasized that one indicator cannot accurately predict the price cycle of Bitcoin. Crypto Capo explained that the combination of a few indicators could serve as guidance for the future. He wrote:

“You cannot base a prediction on an indicator. What we do is combining several methods to have a guideline for the future, to see what is more likely. But in the end, we adapt to what the price does in the present.”

“Bullish year ahead”

Traders have differing perspectives on where Bitcoin is headed in 2021, but most traders remain overwhelmingly bullish.

Cointelegraph Markets analyst Michael van de Poppe said he anticipates Bitcoin to reach $65,000 to $85,000 by next year’s end. He stated:

“I’ve got to revise my view on the potential level of $BTC at the end of 2021. Through this recent surge, I’m expecting it to be between $65,000-85,000 at the end of 2021. Bullish year ahead.”

Meanwhile, the options market is pricing in a 22% chance of Bitcoin achieving $120,000 by next year, which could also serve as a potential guideline on where BTC is heading in 2021.

In the short-term, however, some traders are cautious in entering leveraged positions. A pseudonymous trader known as “TheBoot” said the ideal scenario is to wait for Bitcoin to consolidate at $25,000 or enter after the next price upsurge. The trader explained:

“No rush to enter leveraged trades on $btc right here imo. Best would be to wait and long low 25k or even mid 24k. Alternatively, wait for the next leg up and then a dip from there.”

Cointelegraph previously reported that whales have been buying Bitcoin more aggressively since Christmas, which could buoy the mid-term bull case for BTC entering into 2021.