Right now, Bitcoin price seems to be in a holding pattern that’s pretty agreeable to buyers who bought in late in 2019 when the price was under $8000.
After leaping up to around $8700 on Tuesday, Bitcoin spiked at over $9100 Saturday, and since then has petered along at its current price point near $8600.
In a piece this morning, Horus Hughes at Cointelegraph takes a shot at characterizing both bullish and bearish projection scenarios after looking at current Bitcoin action in terms of Bollinger bands and MACD:
“At the moment, the price rides along with the moving average of the Bollinger Band indicator and the 4-hour moving average convergence divergence (MACD) and relative strength index (RSI) suggest that the bulls will attempt to push Bitcoin price to the upper Bollinger Band arm which is located at $8,983 and also lined up with the ascending trendline which BTC fell below on the Jan. 18 pullback,” Hughes writes, characterizing late BTC behavior as “tightening”. “Bitcoin’s trading volume also has tapered off, an occurrence that is typical before a sharp shift in price and the MACD has converged with the signal line of the 4-hour timeframe which is a bullish signal.”
In a bearish scenario, Hughes says traders who, he predicts, “will clench their jaws and rub their sweaty palms” at lower prices, can expect supports at $7600 and $7200.
As for the bullish scenario, Hughes says this:
“A bullish outcome would involve Bitcoin price bolting above $9,133 and flipping $9,200 to support. Doing so would open the door for the digital asset to take out $9,600 and begin the push toward $10,000. $9,800 is likely to present significant resistance and traders will be tempted to take profits at this point, possibly resulting in a sharp pullback.”
Other likely occurrences in a move back to 10K would include the re-emergence of a lot of that cheerleading we heard just weeks ago as BTC crowned that psychological price point. Otherwise, some of those cheerleaders get quieter, but many hodlers are confidently hanging on for the long haul.
Other news emerging is analysis showing that Bitcoin risk-adjusted returns have beaten gold and stocks after each past “halving” of the BTC mining reward: another halving is planned for May 2020.
