Bitcoin price has been more volatile than ever, following an early 2020 rally to above $10,000, followed by a record-breaking historic plunge to below $4,000 just days later.
The price action in between has been nearly as explosive, however, over the last four days, the daily has closed with four consecutive daily doji candles, indicating that there’s a great deal of indecision in the crypto market currently, which will all end soon with a massive break in volatility.
Four Consecutive Daily Doji on Bitcoin Price Paint Picture of Indecision
The leading cryptocurrency by market cap has had a rollercoaster ride thus far in 2020. The asset valiantly recovered above $10,000 earlier this year, only to be rejected by peak coronavirus panic on Black Thursday this past March, resulting in a catastrophic 50% drop in Bitcoin.
Bitcoin price has already nearly doubled in value from the extreme low at $3,800. However, a rejection above $7,000 sent the cryptocurrency tumbling back down toward lows. Thus far, support has held, and bulls have managed to prevent a retest of last month’s bottom.
Related Reading | Bitcoin Price Weekly Closes As Shooting Star Doji, Epic Plunge May Follow
The closely matched game of tug of war going on between bulls and bears can be seen perfectly on Bitcoin price charts, due to the last four daily candle closes as doji candlesticks.
Doji are Japanese candlesticks that typically indicate indecision and an equal fight between buyers and sellers that results in an open and close around the same level.
After four days of indecision, it is likely that a decision will soon be made on which direction Bitcoin will trend for the weeks ahead.
Bollinger Band Width Shrinks Ahead of Massive Break in Volatility
Also depicted on the chart showing the four indecision candles, is the Bollinger Band Width indicator. The Bollinger Bands are composed of a simple moving average and two standard deviation lines that widen or narrow depending on the volatility within the price action.
Powerful volatility shows widening bands. A separate indicator was designed solely to measure the width of the Bollinger Bands, letting traders get a better visual read on how volatile the market currently is.
Bollinger Bands Width on Bitcoin price charts is at the lowest point since the major crash in March, suggesting that fireworks are ahead when this period of indecision and stagnancy finally comes to an end.
Related Reading | Bitcoin Shows Ideal Set Up For Epic Rally: Stock-to-Flow and Oversold RSI
Bitcoin price breaking up higher from here would cause a surge in buying ahead of the asset’s coming halving. A fall lower could cause extreme panic once again, which could push Bitcoin to a new bear market low.
The current indecision makes sense, given how critical the next move is across the crypto market. It could set the trend for the coming weeks to months ahead.
Featured image from Pixabay
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Bitcoin price has been steadily falling following a powerful, historic surge that caused the crypto asset to explode from lows around $7,300 to as much as $10,500 in two daily candles. The resulting string of red candles and downtrend has caused an important indicator to signal a buy on the price charts of two separate.
Bitcoin (BTC) has rallied to gain nearly 5% in as many hours, narrowly avoiding posting seven consecutive red daily candles for the sixth time ever. The last time that BTC posted seven red daily candles in a row was heading into the start of August 2018.
The short and medium-term outlook is in a downtrend. Responsible selling may be considered at key areas with bearish reversal candles. MKR/USD Medium-term Trend: Bearish Supply zones: $800. 00, $850.
The short and medium-term outlook is in the uptrend. Traders may consider buying with bullish reversal candles as confirmation in key areas. ZRX/USD Medium-term Trend: Bullish Supply zones: 0. 3600, 0.
The short and medium-term outlook is in the downtrend. Traders may consider selling at key areas with bearish reversal candles as entry confirmation. RVN/USD Medium-term Trend: Bearish Supply zone: $0.
The short-term is in a bullish trend while the medium-term outlook is in a range-bound market. Traders may consider buying at key areas with bullish reversal candles. HOT/USD Medium-term Trend: Ranging Supply zone: $0.
The short and medium-term outlook is in the uptrend. Traders may consider buying at pullback areas with bullish reversal candles. NANO/USD Medium-term Trend: Bullish Supply zones: $2. 00, $2. 20, $2.
The short and medium-term outlook is in the uptrend. Responsible buying recommended after bullish reversal pattern candles. DCR/USD Medium-term Trend: Bullish Supply zone: $40. 00, $45. 00, $50. 00 Demand zone: $15.
The medium-term outlook is in a downtrend while the short-term is in a range-bound market. Traders may consider selling at key rejection area with bearish reversal candles. HOT/USD Medium-term Trend: Bearish Supply zone: $0.
Electroneum has managed to temporarily stop the slide into nihility and closed couple of green daily candles but then again slumped and started dipping down to 44 sats all time low. The thorny path back above the crucial resistance line at 85 sats looks like a pipedream right now.
Electroneum has managed to temporarily stop the slide into nihility and closed couple of green daily candles but then again slumped and started dipping down to 44 sats all time low. The thorny path back above the crucial resistance line at 85 sats looks like a pipedream right now.
Mid May Update: Technical Analysis Electroneum has managed to temporarily stop the slide into nihility and closed couple of green daily candles but then again slumped and started dipping down to 44 sats all time low.
Mid May Update: Technical Analysis Electroneum has managed to temporarily stop the slide into nihility and closed couple of green daily candles but then again slumped and started dipping down to 44 sats all time low.
Mid May Update: Technical Analysis Electroneum has managed to temporarily stop the slide into nihility and closed couple of green daily candles but the thorny path back above the crucial resistance line at 85 sats is still uncertain.
The short and medium-term outlook is in the downtrend. Traders may consider selling at key areas with bearish reversal candles as entry confirmation. XLM/USD Medium-term Trend: Bearish Supply zone: $0.
Bitcoin price has continued its spate of volatility so far this week. After hitting highs of $8335 it has since been trying to establish wether it can conquer $8k and establish it as resistance.
Mid May Update: Technicals NEO’s current state is not looking good. It is setting all time lows measured in BTC, since their rebrand from Antshares to NEO. Daily NEOBTC chart is one huge bloodbath, with red candles hammering each other deeper and deeper.
The short and medium-term outlook is in the uptrend. Responsible buying recommended with bullish reversal candles formation above the two EMAs in the short-term. XLM/USD Medium-term Trend: Bullish Supply zone: $0.
The short and medium outlook is in the uptrend. Responsible buying at pullback areas with bullish reversal candles may be considered. BSV/USD Medium-term Trend: Bullish Supply zones: $90, $100, $120 Demand zones: $50, $40, $30 BSVUSD returns to a bullish trend in its medium-term outlook.
Early May Update: Technicals NEO’s current state is not looking good. It is setting all time lows measured in BTC, since their rebrand from Antshares to NEO. Daily NEOBTC chart is one huge bloodbath, with red candles hammering each other deeper and deeper.
Early May Update: Technicals NEO’s current state is not looking good. It is reaching its all time lows measured in BTC, since their rebrand from Antshares to NEO. Daily NEOBTC chart is one huge bloodbath, with red candles hammering each other deeper and deeper.
Late April Update: Technicals NEO’s current state is not looking good. It is reaching its all time lows measured in BTC, since their rebrand from Antshares to NEO. Daily NEOBTC chart is one huge bloodbath, with red candles hammering each other deeper and deeper.
Summary:The bitcoin market has seen sustained buying pressure as the daily candles have continuously closed new highs following the impulsive move that brought us to the $5,000 levels.
The bulls are in control of the short and medium-term outlook. Responsible buying at pullbadk areas with bullish reversal candles as confirmation. BCH/USD Medium-term Trend: Bullish Supply zones: $180, $200, $220 Demand zones: $50, $40, $30 BCHUSD is in a bullish trend in its medium-term outlook. The breakout from the upper price range at $167.50 […]
Since mid-February, the bitcoin market has continued to drift upward toward a band of strong, macro resistance (shown below as a red band). This slow, drift upward marks our fourth test of the resistance zone and, unlike the three prior tests, our rejection of the level has shown a weakness on the side of the bears:Figure 1: BTC-USD, Daily Candles, Fourth RejectionIf we compare the three prior rejections (labeled 1, 2 and 3), we see that the move into this resistance level was violent — and had equally violent rejections.
A slow, grinding upward drift has been the name of the game for bitcoin’s market over the last few weeks. The upward drift is bringing us slowly to a level that was previously rejected violently:Figure 1: BTC-USD, Daily Candles, Upward DriftOur third rejection of the red resistance level shown above brought the market into a test of macro support in the mid-$3,000s.
Last Friday, we discussed a macro resistance level bitcoin would likely test. The level was tested three times prior and immediately rejected. Now, for the fourth time, we find ourselves situated above the level as we wait to see if our support holds:Figure 1: BTC-USD, Daily Candles, Fourth Test of Macro ResistanceThe first three attempts to hold support above the black, broken resistance have been stifled with relatively high amounts of volume.
Bitcoin remains in its tightly coiled range as the market continues its sideways trend for the third week in a row. While macro support has been tested three times recently, we have yet to test the overhanging macro resistance:Figure 1: BTC-USD, Daily Candles, Narrow RangeThe blue zone outlined above shows a very strong zone of support that, over the last few weeks, has seen three strong tests and has led to a slowly upward-drifting market consolidation.
Bitcoin continues to coil tightly within its range-bound market as the bulls and bears fight it out to see which is most dominant. On the lower time frames (TF), bitcoin is managing to find support:Figure 1: BTC-USD, 2-Hour Candles, Low TF SupportThe zone outlined by the green line in Figure 1 represents local support that has kept the market afloat for the last week and a half.
After days and days of consolidation, bitcoin finally managed to break a new high for the first time in almost two weeks. This new high, so far, has been short lived, however, as it was almost immediately sold into by eager bears:Figure 1: BTC-USD, 4-Hour Candles, New HighOur current 4-hour candle is seeing a relatively easy retracement after days and days of an upward grind.
Leading into the London open, bitcoin broke through its local support level in a move that seems to be hinting toward a downward continuation:Figure 1: BTC-USD, Daily Candles, Broken Local SupportSo far, our daily candle has yet to close, but it is currently on schedule to close below local support.
Shortly after falling from its test of the low $4,000s, bitcoin managed to find support in the mid $3,500s. This has proven to be a relevant level over the last few months, and finding support here would be a sign of relatively strong demand:Figure 1: BTC-USD, Daily Candles, Local SupportThe high candle spread rejection following our test of the low $4,000s was an indication that we had strong levels of supply left in the market, but for the time being we are holding support.
Over the weekend, a strong rally was stifled by an even stronger rejection as the bitcoin market was shoved into a band of overhanging resistance. This band of resistance has been mentioned several times in our analyses over the last few weeks as it has proven impossible to overcome for the time being:Figure 1: BTC-USD, Daily Candles, Failed BreakoutThis run to the low $4,000s coincided with a breakout of a rather large symmetrical triangle consolidation shown above.
The coin is in a range in the medium-term outlook while the short-term is in a bullish trend. Patience for bullish candles formation above the 10-EMA is important. BSV/USD Medium-term Trend: Ranging Supply zones: $150, $200, $250 Demand zones: $50, $40, $30 BSVUSD continues in a range-bound market in its medium-term outlook. The bullish […]
The cryptomarket remains coiled as we lead into the weekend with no new highs and no new lows being established for bitcoin. However, it is nicely consolidating on lower time frames and hints toward the possibility of another leg up:Figure 1: BTC-USD, Hourly Candles, Consolidating PennantThe pattern shown in Figure 1 outlines a potential continuation pattern called a “bullish pennant.
Over the course of the last 10 days, bitcoin has managed to rally nearly 20% in value as it burst through two major resistance levels and is now beginning the test of a major macro level:Figure 1: BTC-USD, Daily Candles, Macro ResistanceWe can see a clear, descending supply-and-demand channel that governed the market for the last two months.
Last week, we saw a violent move to the upside as bitcoin rallied 11% over the course of one day. Since peaking in the upper $3,600s, bitcoin has seen close to zero bullish follow-through, and the price has begun to drift downward over the course of the last week:Figure 1: BTC-USD, Hourly Candles, Downward DriftDownward-drifting markets like this can often be a sign that distribution is taking place.
Doge has finally broken above a long-term downtrend which it has been trading in since mid-December. However, the price is struggling to break above a former support level at $0. 002. Price briefly traded above $0.
Shortly after the London Open, the entire crypto market saw a strong round of buying. Some coins broke their highest volume seen since the beginning of the bear market, and several others broke straight through overhanging resistance levels.
After weeks of consolidation, bitcoin finally broke through support. The market now finds itself cruising toward prior lows. On expanding volume and spread, the bitcoin market appears ripe for a continuation of the downtrend:Figure 1: BTC-USD, Daily Candles, Broken SupportAlthough the current daily candle has yet to close, unless there is a strong influx of demand hitting the market, it stands to reason that bitcoin will be closing a new daily low for the first time since mid-December.
Days and days of sideways consolidation and tightening volume has been the name of the game for the bitcoin market. A narrow range of $200 has caused a weeks worth of activity to coil and consolidate in preparation for bitcoin’s next move:Figure 1: BTC-USD, Daily Candles, Narrow RangeThe figure above shows just how narrow the range has been over the last week as the market has continued to grind out support and fail to break above overhanging resistance.
The market has been consolidating over the past few days with many of the top cryptocurrencies forming Doji candles on their daily charts. A Doji candle is a candle where the open and the close are around the same time and reflects uncertainty from the side of traders.
There is currently a lot of indecision in the cryptocurrency markets. Both bitcoin and ethereum are forming Doji candles on their daily charts. A Doji candle is a candle where the open and the close are around the same point and typically reflect uncertainty from traders.
Ripple’s XRP is forming its third consecutive Doji candle today on the daily chart. A Doji candle is a candle where the open and close are around the same point and typically reflects uncertainty from traders.
Following last Friday’s drop, bitcoin has found itself coiled, once again, at the bottom of the range it established back in December. With the current market unable to close a new high, the market finds itself in a precarious position:Figure 1: BTC-USD, Daily Candles, Range Support TestThe blue support level shown above illustrates the boundary of the multi-week range bitcoin has been bound by.
The total crypto market cap dropped another $5 billion to $118 since January 11, 2019, as bitcoin and the top ten currencies continue to struggle to reverse the bear trend. BTC-USD Bitcoin stayed flat on January 11 and closed trading session at $3,715 after four consecutive red candles on the daily chart.
Finally, after about a week or so of a tight, range-bound market, bitcoin poked right through support. This swift move dropped the price nearly 10% in the span of just a few short hours:Figure 1: BTC-USD, Hourly Candles, 11% DropNot only did this move occur on high spread, it occured on high volume.
Crypto analyst Ali Martinez has offered an exciting bullish projection for the Bitcoin price. This analysis is even more interesting for the premier cryptocurrency after it fell to a multi-month low over the past week.
The Bitcoin price pullback which began at the end of last week has accelerated this Monday morning despite a relatively stable weekend. The weekly candle has closed off with a bearish signal indicating further losses could be coming.
