The First Happened For Bitcoin
After days of struggling to contain losses, Bitcoin (BTC) bulls gained some ground, fixing the price below $17,000. In the meantime, investors are looking for signals that can trigger Bitcoin’s price movement in both directions. Dec.
Bitcoincenter’s rainbow price chart is known as one of the indicators used by the market to determine the next possible Bitcoin price movement. The tool uses color bands that follow logarithmic regression and reviews past performance to provide a potential insight into their long-term movements.
A First in History Happened
Interestingly, as of November 19, the Bitcoin indicator for the first time fell below the level of basically a fire sale, represented by the color blue; this level attracted attention as the lowest band on the Bitcoin rainbow chart.
Looking at the chart, Bitcoin has basically been stuck in a fire sale zone for a few weeks now. Historically speaking, Bitcoin last reached this level in March 2020 and the asset consolidated before rising towards the bull market last year.
Interestingly, the indicator maintains an upward trend for Bitcoin’s long-term prospects and emphasizes that the asset’s price will probably reach a six-digit value in the next two years. At the same time, the chart points to a possible ‘HODL’ status of Bitcoin at the end of the year.
The downward breach of the indicator came after Bitcoin seemed to have exhausted its downward momentum, which was partially triggered by the collapse of the FTX cryptocurrency exchange. At the current price, Bitcoin had found a support level at $16,200, and overcoming this level could possibly lead to further correction.
Indeed, the possibility of a further correction towards the 2021 dollar was highlighted recently after Bitcoin gave the strongest sell signal since 10.000. In general, the price of Bitcoin is stuck in a downtrend, with unsuccessful attempts to cross the 17,000 dollar amid low buying pressure, dominated by liquidity concerns.
With Bitcoin finding some stability, the focus had previously been turned to the bull’s potential to trigger a rally towards $18,000. In recent weeks, the 18.000 dollar level had emerged as a very important support position for Bitcoin.
Bitcoin Technical Analysis
From the perspective of technical analysis, Bitcoin daily indicators are leaning towards the bearish side with a summary pointing to the sale at 10. Moving averages suggest a strong sell at 14, while oscillators are neutral at 9.
At the moment, Bitcoin was trading at $ 16,700 by the time of writing, with a loss of less than 1% in the last 24 hours. Overall, Bitcoin’s underperformance could probably disappear once the ongoing crypto market uncertainty stemming from the FTX collapse stabilizes.
Despite the fact that most trading platforms publish evidence of reserves, data on the chain indicate that Bitcoin is being transferred from exchanges to cold wallets. One of the areas that needs to be focused on is the ability of crypto exchanges to reassure users that their funds are safe.
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