BTCUSD - 1D Chart Analysis
Updated
After 30 days of bearish trend, the price of BTC has changed it's direction and it seems decided to fully recover the losses which were registered in the same interval.
Therefore, on the 8th of February the trading volumes have significantly increased and stimulated the price's "jump" above the 20 days Moving Average which leaded to a radical trend change and a growth of almost 8% in the same day.
Looking to the indicators that signaled such an "impulse", we can identify the MACD's and the Stochastic's crossovers and both came up with the "BUY" signal in the same day.
The second one didn't only announced the "slow down" of the price which eventually happened in the next 6 days but it was also followed on the 16th of February when the price of Bitcoin has started another rally.
At this stage, the 5 indicators we are using for this chart are facing a small contradiction, as it follows :
* The upper standard deviation of the Bollinger Bands has been reached again, meaning that according to this indicator the price is considered "overbought" and the price may start a "correction" anytime soon.
* The RSI is getting close to the level of 70 and if this will happen, the indicator will show the same direction as the Bollinger Bands does;
* Both Moving Averages of the Stochastic are above the level of 80 which means that the price is one more time considered "overbought" but without any crossover registered yet, there is no change in the price direction which is indicated for now;
* The MACD is still above the Signal, meaning that the price still has more room to increase;
* The last but one of the most important parameter is represented by the trading volumes. These ones are still optimum for a possible price increase but we have to notice that today's level is lower than yesterday.
Based on the actual circumstances and also on the previous behavior, we think that the main scenario is the one in which a possible "slow down" of the price will start around the level of 4100$ and if the trading volumes will show the same consistency, there are chances for the price of 4224$ to be reached in the following days.
On the other hand, if the trading volumes will drop it is possible to see a price "correction", maybe even down to the level of 3690$
Therefore, on the 8th of February the trading volumes have significantly increased and stimulated the price's "jump" above the 20 days Moving Average which leaded to a radical trend change and a growth of almost 8% in the same day.
Looking to the indicators that signaled such an "impulse", we can identify the MACD's and the Stochastic's crossovers and both came up with the "BUY" signal in the same day.
The second one didn't only announced the "slow down" of the price which eventually happened in the next 6 days but it was also followed on the 16th of February when the price of Bitcoin has started another rally.
At this stage, the 5 indicators we are using for this chart are facing a small contradiction, as it follows :
* The upper standard deviation of the Bollinger Bands has been reached again, meaning that according to this indicator the price is considered "overbought" and the price may start a "correction" anytime soon.
* The RSI is getting close to the level of 70 and if this will happen, the indicator will show the same direction as the Bollinger Bands does;
* Both Moving Averages of the Stochastic are above the level of 80 which means that the price is one more time considered "overbought" but without any crossover registered yet, there is no change in the price direction which is indicated for now;
* The MACD is still above the Signal, meaning that the price still has more room to increase;
* The last but one of the most important parameter is represented by the trading volumes. These ones are still optimum for a possible price increase but we have to notice that today's level is lower than yesterday.
Based on the actual circumstances and also on the previous behavior, we think that the main scenario is the one in which a possible "slow down" of the price will start around the level of 4100$ and if the trading volumes will show the same consistency, there are chances for the price of 4224$ to be reached in the following days.
On the other hand, if the trading volumes will drop it is possible to see a price "correction", maybe even down to the level of 3690$
Note
Bitcoin broke through resistance 2 level.
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