Bitcoin has seen an encouraging improvement over the past seven days as the price went bullish by 5.76%, raising the price tag from 3463.46 USDT (02/02/2019) to 3662.99 USDT (09/02/2019).
As demonstrated by the 4-hour candle chart above, the trend line started out on the 2nd to assume a relatively sideways motion which extended for a period of about four days to the 6th. This was then followed by a bullish trend which saw the price plummeting to the weeks low on the 8th at 3373.10 USDT. The next 6 hours saw the price hit the weeks high at 3733.58 as indicated by the chart above. This was followed by a sharp, short term downtrend within a matter of hours which led the price to a relatively sideways trend which took the price to the current rating.
Over the past 24 hours, the value of Bitcoin has seen a 6.74% rise, as it hit a 24 hour high and low of 373.58 and 3429.00 respectively. The overall 24 hour trading volume now lingers at around 170.7 million USDT.
A WORD FROM THE INDICATORS
BOLLINGER BANDS
In general terms, the Bollinger Bands are describing the week in two phases. The first phase is a period of low volatility extending from the 2nd to the 8th just at the weeks low and is demonstrated by convergence of the two bands. The second phase is a period of high volatility extending from the weeks low on the 8th to the present, which is demonstrated by marked divergence of the upper and lower bands. The trend line started out on the second on the upper band before gradually descending to touch the lower band on the 7th. This was then followed by a strong bullish trend which led the trendline to through the upper band and beyond, before hitting the weeks high.
Currently, the trend line lingers within the vicinity of the upper band in a sideways direction. Considering the marked divergence of the bands and general direction of the trendline, there is not much reason to believe that a bearish reversal is imminent. The Bollinger Bands are pointing to either a continuation of the current sideways trend or a possible resumption of the strong bullish trend it commenced hours ago.
RELATIVE STRENGTH INDEX
The RSI is quite consistent with the price trendline from the 2nd to the 6th as it followed a uniform sideways pattern in the vicinity of the midline (50.00). As the price trendline took a bearish turn on the 6th, the RSI also went bearish towards the overbought zone where it maintained a position in the upper vicinity of the lower limit (30.0000) untill the 8th.
As the price trendline took a strong bullish momentum after hitting the weeks low, the RSI followed the footsteps in a swift fashion to hit oversold conditions. This position has been maintained to the present as demonstrated by the above chart. This concurs with the Bollinger Bands indication of a possible continuation of the current sideways trend or the strong bullish trend we have witnessed since yesterday.
MOVING AVERAGE CONVERGENCE DIVERGENCE (MACD)
The moving averages are also pointing to the same possibilities as shown by the Bollinger Bands and Relative Strength Index. After exhibiting marked convergence for the first 4 days, the Faster Moving Average took a downtrend as the price went bearish to hit the weeks low. The 8th saw an aggressive trend reversal where the Faster Moving Average crossed over the Slower Moving Average in a strong bullish direction which saw the two lines diverging markedly. The marked divergence has been kept intact untill now thus pointing to a possible continuation of the bullish trend.
StochRSI
The current status of the StochRSI is quite identical to the RSI as both lines linger in oversold conditions. Prior to this the two lines exhibit a series of oversold and overbought conditions attained as the price was oscillating in new highs and lows throughout the week. The current state of the StochRSI is basically a continuation of oversold conditions attained after the price hit the weeks high on the 8th. In general, the StochRSI is also pointing to a continuation of the new highs reached after the strong bullish trend, or a short term correction before a continuation of the bullish trend commenced earlier on.
CONCLUSION
In a nutshell, both short and long term traders have a reason to be optimistic after the past week saw Bitcoin take a sharp bullish trend with almost all the major indicators pointing to a largely positive short term future. Though the momentum has slowed down over the past few hours, there seems to be hardly any strong signs suggesting an imminent bearish reversal. However, whether this will continue in the long run remains a question for speculation.
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Disclaimer : “The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of cryptonewsbytes.com. This article is not intended to provide any investment advice and should not be taken as is. Please perform your own research before investing in any cryptocurrency.”
