After the blood bath on the alt-market triggered by the SEC in the last few days, let’s take a look where Bitcoin stands as the week starts. For this we will use two indicators developed by Blockunity: the Blockunity Rainbow Score (BRS) and the Blockunity Trend Identifier (BTI).
Let’s start with the basics and explain what we see:
- In the middle of the graph, we can find an optimized moving average, considering the volatility of the asset. This varies from green to red depending on whether the asset price is above or below this average.
- Around this baseline are two bands, in dark yellow and dark blue, these zones represent oversold and overbought areas. There is a total of 10 zones on the fully displayed BRS, to not over saturate the graph we decided to just show the two closest to the price.
- Arrows indicating when the asset is at an inflection point, a change in trend. Behind this is a mechanism that considers volatility, momentum, and trend. The green arrows indicate buying opportunities and the red arrows indicate selling times. The blue arrows give indications with less confidence, they are weaker but more aggressive signals.
- The Adjusted Cloud (here in green) is formed by the 100 and 200 moving averages.
- The Fibonacci Cloud (in white), a trend-following cloud calculated with the well-known Fibonacci sequence.
So what can we learn with all this information?
- First of all, the optimized moving average often acted as a support for Bitcoin in the past. Opening the week under this moving average isn’t a good sign, but as the movement of breaking wasn’t very strong, we think there is no need to panic. You can also see that on Monday 5th, the average acted as a support, and the day after the price went up as fast as it went down.
- The price evolving inside the cloud and using its lower limit as a support is reassuring. As long as the price doesn’t drop under the cloud the current trend will not be broken.
- Finally, the price is above the Adjusted Cloud, which is itself in a bullish setup where the slower moving average is under the faster one. Here again, as long as the price of the asset is above the cloud no need to worry for a bearish trend. The last time Bitcoin was beneath the cloud was in January 2023 when Bitcoin traded at $18,500. Since then, the asset broke the downtrend and kept its slow and steady climb.
To conclude, Bitcoin starts this new week in a somewhat tricky place, especially regarding the whole noise around it with the SEC, the alts and some exchanges. The next few days will be very important to follow to see if last week was just a noisy neighbour or if it is the trend that will be followed in the coming weeks.
Let’s start with the basics and explain what we see:
- In the middle of the graph, we can find an optimized moving average, considering the volatility of the asset. This varies from green to red depending on whether the asset price is above or below this average.
- Around this baseline are two bands, in dark yellow and dark blue, these zones represent oversold and overbought areas. There is a total of 10 zones on the fully displayed BRS, to not over saturate the graph we decided to just show the two closest to the price.
- Arrows indicating when the asset is at an inflection point, a change in trend. Behind this is a mechanism that considers volatility, momentum, and trend. The green arrows indicate buying opportunities and the red arrows indicate selling times. The blue arrows give indications with less confidence, they are weaker but more aggressive signals.
- The Adjusted Cloud (here in green) is formed by the 100 and 200 moving averages.
- The Fibonacci Cloud (in white), a trend-following cloud calculated with the well-known Fibonacci sequence.
So what can we learn with all this information?
- First of all, the optimized moving average often acted as a support for Bitcoin in the past. Opening the week under this moving average isn’t a good sign, but as the movement of breaking wasn’t very strong, we think there is no need to panic. You can also see that on Monday 5th, the average acted as a support, and the day after the price went up as fast as it went down.
- The price evolving inside the cloud and using its lower limit as a support is reassuring. As long as the price doesn’t drop under the cloud the current trend will not be broken.
- Finally, the price is above the Adjusted Cloud, which is itself in a bullish setup where the slower moving average is under the faster one. Here again, as long as the price of the asset is above the cloud no need to worry for a bearish trend. The last time Bitcoin was beneath the cloud was in January 2023 when Bitcoin traded at $18,500. Since then, the asset broke the downtrend and kept its slow and steady climb.
To conclude, Bitcoin starts this new week in a somewhat tricky place, especially regarding the whole noise around it with the SEC, the alts and some exchanges. The next few days will be very important to follow to see if last week was just a noisy neighbour or if it is the trend that will be followed in the coming weeks.