Bear Trend Begins To Take Hold In Bitcoin For First Time Since October 2020

2021-1-23 23:00

Bitcoin price has now pulled back a full $13,000 from 2021 high to low. Yesterday’s massive bearish, red candle is one obvious sign that the trend is turning. However, a technical analysis tool used to gauge the strength of trends also confirms that bears have taken over the reigns from bulls and it could lead to a short-term downtrend.

Bitcoin Bears Regain The Upper Hand, Reclaim Crypto For First Time Since October

Bitcoin is undeniably in an uptrend, and according to comparisons with past market cycles, things are only just getting warmed up.

But that doesn’t mean that the higher timeframe trend can’t be up, while the shorter-timeframe intraday trends heads down – or that price action across days and weeks can’t temporarily turn bearish.

Related Reading | Career Trader Subtly Hints Of Bitcoin Parabola Breakdown With Fractal Diagram

That’s exactly what has happened recently, with the top cryptocurrency shaving as much as $13,000 off its price from high to low. Yesterday’s daily close left behind an extremely bearish candle and reminder that asset prices don’t only move up in a straight line.

The recent parabola might have been broken, which could suggest a sharper correction is coming. Some of the best traders and analysts are expecting more downside before things turn back up.

The Average Directional Index and DMI show bears have taken over daily timeframes | Source: BTCUSD on TradingView.com

The Average Directional Index confirms the bearish price action. The red DMI moving so sharply above the green is a clear sign that bears are now in control of the cryptocurrency’s daily trend once again.

The ADX itself is still well below 20, so the trend hasn’t yet fully taken hold. What’s notable is that this is the first time bears have reclaimed Bitcoin since October when FOMO spun out of control.

Trend Strength Measuring Tool Shows Bulls Aren’t Down For The Count Just Yet

The ADX is used to gauge the strength of the underlying trend, and like most tools, higher timeframes provide the most dominant signals.

Bears have won on the daily, but on weekly timeframes, however, the same tool shows that bears don’t really have a chance, and any downward momentum will be short-lived before bulls regain control.

The Average Directional Index and DMI show bears have taken over daily timeframes | Source: BTCUSD on TradingView.com

Oftentimes, corrections in assets are healthy, confirm resistance as support, and reignite buying interest by reaching more attractive price levels.

Related Reading | The Striking Similarities Between The 2017 Bitcoin Peak And Now

Could the pullback be exactly what Bitcoin needs to refuel and rocket higher? Or are there simply too many similarities shared with the 2017 peak to ignore the potential of a longer downtrend in the weeks ahead?

Featured image from Deposit Photos, Charts from TradingView.com

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 68630.93 (+0.20%)
Объем 24H $41.466b
Изменеия 24h: -0.37 %, 7d: -3.65 %
Cегодня L: $66916.68 - H: $68649.38
Капитализация $1357.74b Rank 1
Цена в час новости $ 32741.14 (109.62%)

bitcoin trend tool strength used gauge analysis

Источник: newsbtc.com

bitcoin trend → Результатов: 126


Фото:

Bitcoin Could See a Major Breakout in The Coming Days; Here’s Why

Bitcoin has been stuck in a tight trading range throughout the past several days This has offered little insight into the cryptocurrency’s short-term trend, as both its buyers and sellers remain at an impasse As for where it may trend next, analysts now seem to believe that it is coiling up for a major breakout This could lead it well past $12,000 in the coming few weeks There are a few factors that suggest this […]

2020-8-15 02:00


Фото:

Here are the Two Reasons Why Bitcoin Investors are Fleeing Exchanges

Bitcoin’s recent rally has closely coincided with a trend of investors fleeing exchanges It appears that the two primary factors behind this trend are degrading trust in centralized platforms coupled with more investors moving towards a long-term “hodling” strategy Either way, this trend does bolster Bitcoin from a fundamental perspective Bitcoin’s intense uptrend seen in the time following its mid-March meltdown has ushered in a significant influx of new capital to the market – a […]

2020-5-4 22:00


Bitcoin Bound to Surpass $330,000 in Two Years by Following the 2017 Trend

The month of April was quite friendly to the cryptocurrency market in general and Bitcoin (BTC) in particular. However, this first week of May has proven to be the best so far with Bitcoin pushing past $5,500 to even hit $6,000 on some exchanges, bringing its market cap to over $100 billion for the first […] The post Bitcoin Bound to Surpass $330,000 in Two Years by Following the 2017 Trend appeared first on ZyCrypto.

2019-5-3 18:24


Bitcoin все еще выглядит слабым

Ко вторнику, 4 декабря, Bitcoin умеренно восстанавливается в цене и торгуется по 4038 USD, сообщает Дмитрий Гурковский, ведущий аналитик RoboForex. Если рассматривать динамику Bitcoin на 4-часовом таймфрейме, то можем увидеть развитие среднесрочной фазы коррекции.

2018-12-4 14:52


дальше еще 77 новостей →

Партнеры Currencies.ru

Аналог Notcoin - Blum - Играй и зарабатывай Монеты



Реклама на Currencies.ru

Самое свежее на Currencies.ru

Bitcoin Price Takes a Sharp Dip: Is This Just a Correction?

Bitcoin price is correcting gains from the $73,500 zone. BTC is back below the $70,000 level and showing a few bearish signs. Bitcoin started a fresh decline from the $73,500 zone. The price is trading below $71,500 and the 100 hourly Simple moving average.

Bitcoin Price Nears All-Time High: Can It Push Past the Mark?

Bitcoin price is rallying above the $72,000 zone. BTC is up over 5% and it could soon aim for a new all-time high above $73,500. Bitcoin started a fresh increase above the $70,000 zone. The price is trading above $70,500 and the 100 hourly Simple moving average.

Bitcoin Price Rallies Above $70K: Is a New High Within Reach?

Bitcoin price is rallying above the $70,000 zone. BTC is up over 5% and it could soon aim for a move above the $72,000 resistance zone. Bitcoin started a fresh increase above the $68,000 zone. The price is trading above $70,000 and the 100 hourly Simple moving average.

Bitcoin Price Targets Gradual Rise: Will the Uptrend Hold?

Bitcoin price is attempting a fresh increase above the $67,000 zone. BTC could gain pace if it clears the $68,750 resistance zone. Bitcoin started a fresh increase from the $65,500 zone. The price is trading above $67,200 and the 100 hourly Simple moving average.

Bitcoin Price Eyes Further Gains: Can It Keep Climbing?

Bitcoin price is attempting a fresh increase above the $37,000 zone. BTC could gain pace if it clears the $68,800 resistance zone. Bitcoin started a fresh increase from the $65,200 zone. The price is trading above $67,500 and the 100 hourly Simple moving average.

Bitcoin Price Could Reignite Uptrend: Is a New Surge Coming?

Bitcoin price tested the $65,200 zone before the bulls appeared. BTC is now rising and aiming for more upsides above the $67,500 resistance. Bitcoin extended losses and tested the $65,200 zone. The price is trading below $67,500 and the 100 hourly Simple moving average.