After a 70% pullback and a low of around 5800 we have heard a lot of doom scenarios for Bitcoin and cryptocurrencies in general. However, I am here to bring you some positive news.
Looking at the RSI levels using the standard 14-period I've indicated most of the occurences where we broke above the 60 level and as you can see on the chart, whenever the 60 level is broken we mostly see a nice rally for BTC. In the worst case scenario it went sideways for a while before going up but in general the uptrend after this event occurs really sets off.
Furthermore, we see the dominance of BTC, which at some point was back at 45% now drop to below 40%, meaning that investors are willing to take on more risk again. We'll probably see some nice gains in the alt market again whenever BTC consolidates for a while, investors that were standing on the side lines during the last 2 months are eager to make money and a lot of the 2017 ICOs are starting to bring to the world the first results of their development.
So is the bear market over ? We cannot say it with 100% certainty as there is still a lot of insecurity in the market after this 70% drop, but the starts seem to align for a nice move up in the coming months. With this I think that it is very unlikely that we'll see price break below the Feb 6th lows.
Looking at the RSI levels using the standard 14-period I've indicated most of the occurences where we broke above the 60 level and as you can see on the chart, whenever the 60 level is broken we mostly see a nice rally for BTC. In the worst case scenario it went sideways for a while before going up but in general the uptrend after this event occurs really sets off.
Furthermore, we see the dominance of BTC, which at some point was back at 45% now drop to below 40%, meaning that investors are willing to take on more risk again. We'll probably see some nice gains in the alt market again whenever BTC consolidates for a while, investors that were standing on the side lines during the last 2 months are eager to make money and a lot of the 2017 ICOs are starting to bring to the world the first results of their development.
So is the bear market over ? We cannot say it with 100% certainty as there is still a lot of insecurity in the market after this 70% drop, but the starts seem to align for a nice move up in the coming months. With this I think that it is very unlikely that we'll see price break below the Feb 6th lows.
Comment:
The arrows indicating the breach above 60 on the RSI are not showing correctly on the chart, so I'm giving it another try here ...
Comment:
We saw a nice run up yesterday ... and are losing all those gains today ...
Below is a very simplistic representation of what is next.
Below is a very simplistic representation of what is next.
Check out my FREE indicator scripts:
► www.tradingview.com/u/Nico.Muselle/
Twitter: twitter.com/NicoMuselle
► www.tradingview.com/u/Nico.Muselle/
Twitter: twitter.com/NicoMuselle