The digital asset markets have a lot of noise. From Twitter influencers to YouTube videos, there is an overwhelming amount of content and information vying for our attention.
Fortunately, there are some key indicators that can help us filter out the noise and focus on the signal. In this article, we will discuss five important BTC price indicators that are currently in multi-year "buy zones."
1. The 200-day moving average
The 200-day moving average (MA) is a key long-term indicator that is used by many traders and investors.
The 200-day MA is simply the average price of an asset over the last 200 days.
As you can see in the chart above, the 200-day MA has been a very reliable indicator of support and resistance for BTC over the past few years.
The 200-day MA is currently sitting at around $23,476, which is well above the current price of BTC. This indicates that the long-term trend is still very much intact.
2. The MACD
The MACD (moving average convergence divergence) is a popular technical indicator that is used to gauge the momentum of a market.
The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA.
As you can see in the chart above, the MACD is currently in an under MACD line. This indicates that the momentum is still very much in favor of the bears. However, this means that there is an imminent trend reversal and can be the best time to accumulate.
3. The RSI
The RSI (relative strength index) is another popular technical indicator that is used to gauge the momentum of a market.
The RSI is calculated by dividing the average gain of the asset over the last 14 days by the average loss over the last 14 days.
As you can see in the chart above, the RSI is currently near the 30. This indicates that the market is oversold and a bullish reversal is possibly imminent.
4. The CCI
The CCI (commodity channel index) is a popular technical indicator that is used to gauge the momentum of a market.
The CCI is calculated by subtracting the 20-day moving average from the current price.
As you can see in the chart above, the CCI is currently in the middle after a sudden drop below the CCI line. The CCI can also be used to identify potential reversals in the market. When the CCI is in the middle (between 100 and -100), it means that the market is neither overbought nor oversold, and that a reversal is possible.
5. The Williams %R
The Williams %R is a popular technical indicator that is used to gauge the momentum of a market.
The Williams %R is calculated by subtracting the current price from the highest price over the last 14 days.
As you can see in the chart above, the Williams %R for bitcoin is currently with below the middle at -80. This means that bitcoin is currently in oversold territory. This indicates that the market is due for a rebound.
Let's pay attention to this changes!
If bulls can push BTC above $25,000 in the near-term, it could set the stage for a move towards $35,000 and beyond. Of course, it’s worth noting that the current market conditions are far from ideal for bulls. BTC is still down significantly from its all-time highs, and there is a growing sense of bearishness among market participants.
Furthermore, the overall cryptocurrency market has been fairly flat over the past few weeks, which means that there hasn’t been much buying pressure to help drive BTC higher.
The past six months have seen a general trend of decreasing BTC prices. This trend is largely attributed to a variety of external factors, including but not limited to:
- The cryptocurrency industry has been under close scrutiny from financial regulators around the world in recent years. While some countries have taken a hands-off approach to regulation, others have proposed stringent rules that could have a major impact on the way cryptocurrencies are traded. One of the biggest concerns for regulators is the potential for money laundering and other illegal activity using cryptocurrencies.
- The Fed raised interest rates for the third time in a row, backed by stronger predictions for future hikes, sending the dollar index and fixed income yields to fresh highs (Read More Here):
- In recent years, Russia has been increasingly assertive in its foreign policy, particularly with regard to its neighbors. This has led to tension with the European Union, which is heavily dependent on Russian natural resources. Ukraine has been caught in the middle of this conflict, as Russia has used its control of the country's energy supplies to exert pressure on the government. This has led to concerns about the weaponization of natural resources, as Russia has used its energy dominance to try and achieve its geopolitical objectives
- There is a strong risk-off sentiment in the market due to the possibility of a U.S. and global recession. This has led to a sell-off in riskier assets and a flight to safety in government bonds.
Blog Conclusion
Well, the confluence of these indicators suggests that Bitcoin is currently undervalued. However, it is important to keep in mind that the bottom does not appear to be in, as there are still a number of non-crypto-specific issues that are injecting weakness into BTC’s price and the wider market. Nevertheless, from a technical standpoint, it does appear that there is some value in Bitcoin at its current price level. Of course, it is always important to do your own research before making any investment decisions.