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No confirmation of volatile changes; That’s when the real fireworks will begin
Short-term trends look a bit shaky for the cryptocurrency market and the potential for a pause continues to persist. After navigating in the red zone, Bitcoin has now slipped into the green zone, trading above $61,500 levels.
Analyst perspective on the price range
Crypto World Analyst Josh said Bitcoin has been stuck in a wide sideways range lately, bouncing between around $73,000 and $56,000. Historically, such periods of calm often precede the fireworks of big prices. So get ready: some serious action could be just around the corner.
Technical analysis insights
Zooming in on the 3-day chart, the analyst noticed that the Relative Strength Index (RSI) fell below 50. Over the past two years, whenever this happened, it often proved to be a good time to buy Bitcoin, especially if you are thinking long term.
Now, looking at the daily chart, things get a little bearish. The US Dollar Index (DXY) has been flexing its muscles and this usually spells trouble for Bitcoin in the short term. But here’s a twist: the daily RSI has recently reached oversold levels. It’s like a red light that turns green for a short pause in the slide down.
Important levels to keep an eye on? Well, between $60,000 and $61,000 is where Bitcoin seems to be finding its footing right now. Going below $56,000, however, things could get ugly. On the other hand, if Bitcoin manages to break out above $63,000, $67,000 or even $72,000 to $74,000, the coin could see some serious fireworks again.
Looking at key technical indicators, such as Bollinger Bands and Bollinger Bands Width, he noticed that over the course of the day, these indicators showed minimal change. This lack of movement suggests that no significant volatile changes have yet begun, particularly on the broader timeframe where such movements historically range between 20% and 30% or more over several weeks.
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