Bitcoin needs a rest?

Bitcoin needs a rest?

By IceTReloaded | Crypto Evolution | 2 Aug 2020


Bitcoin had a great performance the last two weeks. Is it time to rest? Or it will keep mooning? Let's see what the charts can show us.

Weekly view

Let's look at the chart in weekly view.


Bitcoin weekly

Firstly, we can see that it broke the triangle formation upwards, breaking a strong and important line of resistance. At the same time it was able to overcome the zone of 10,000 a "psychological" price value, and 10,500 which had been a resistance in his previous climbs. Now it is at another important value, 11,800-12,000, which in the past acted as a resistance, and where the movement ended up weakening.


Now let's add the Relative Strengh Index (RSI) to our analysis. This indicator shows price strength by comparing individual upward or downward movements of successive closing prices. When it is above 70 points, the security should be interpreted as overbought (meaning that the speculator should consider selling). And similarly to the opposite, oversold at the level of 30.

Bitcoin weekly with rsi
 
In our case, we see that in the weekly vision is approaching the value of 70, meaning that it would be approaching levels of oversold.

Daily view

Let's go deeper into our analysis by adding up the daily view.


Bitcoin day vision

 

The RSI is already at oversold levels in daily view. In the graph I have marked a zone of the RSI that were previous maximums and meant a break in the upward movements. We can see that we are reaching these levels.

To complement the vision, let's add another analysis tool, the Bollinger Bands. Basically, the Bollinger Bands work as an oscillator measurer. It indicates whether the market has high or low volatility, as well as overbought or oversold conditions.

 

Bitcoin day vision with bb


As we can see, the price is above the upper level, which in line with the RSI, indicates that we are at oversold levels.


Conclusion

To conclude, according to what we have seen, it could be close to the time of a rest. But keep in mind that this cannot be assured for sure, the technical analysis is only one more tool, the price could continue rising. This is not financial advise and you always have to do your own research. Good luck everybody.



Crypto Evolution
Crypto Evolution

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