Three months of falling may be the last chance to buy Bitcoin cheaper — the volatility of bitcoin has fallen to its lowest level in 21 months. The coin is under accumulation since the beginning of June, four months neither bulls, nor bears can push the price of Bitcoin in their favor.
Technical indicators show a strong decrease of volatility — the last time such a situation is observed in the market in 2016, just before the beginning of bullrun. Even in traditional markets, the long absence of a clear trend leads to the beginning of a new cycle in the rise or fall of the asset. The chart analysis of the coins in several time periods spent in Coindesk.
At this scale, the price of Bitcoin goes between the two lines symmetrical pennant. At the moment the resistance line of the figure is in the area of 6900$, the support is at the level of $ 6270.
The bandwidth Bollinger (the distance between the Bollinger bands, divided into 20-day moving average line) has fallen to 21-month low. The indicator points to a permanent decline in the volatility over the last 9 months.
It seems that the market will soon be shaken by a new powerful surge of Bitcoin. However, there is an equal probability of the rise and fall. In any case, a signal for opening positions will be breaking one of the lines of the pennant.
5 EMA and 10 EMA for the first time in 2014 passed through a bearish crossover. The result of this was the recent fall of Bitcoin from 6800 to $ 6325.
At this point in time there is still a lot of room to fall. In the long term, the nearest strong support lies in the area of $ 4,500.
On the 1-hour chart Bitcoin can not grow to resistance. It seems that even a bullish divergence on the RSI indicator does not increase.
The result — the market situation is under complete uncertainty. Do not try to trade without clear evidence of a fall or the formation of a new uptrend. Follow the levels and 6270 6900 dollars.
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