Bitcoin’s (BTC) Rally is a Picture Perfect Advance So Far – Bollinger
John P. Njui • BITCOIN (BTC) NEWS • August 18, 2020
In brief:
- According to John Bollinger, Bitcoin’s current rally is a picture-perfect advance.
- BTC has broken the $12k ceiling and managed to turn it into a support zone.
- $13,000 could be in sight if Bitcoin’s momentum is maintained.
The inventor of the popular charting tool/indicator of Bollinger Bands, John Bollinger, has stated that Bitcoin’s current rally is a picture-perfect advance so far. Mr. Bollinger made the comments via Twitter and added that the move by Bitcoin above $12k followed a textbook path within its Bollinger Bands.
His comments were as follows.
I imagine that someone is complaining about the $BTCUSD rally. Not me, a picture perfect advance so far.
Squeeze, confirmed break out, walk up the upper band, consol, support at middle band, mini-Squeeze, break to new highs. How much more could one ask for?!
$13k Could Be In Sight for Bitcoin
Prior to Bitcoin (BTC) breaking $12k, the King of Crypto had printed an ascending triangle. By breaking the $12k ceiling, Bitcoin has set itself on a path to test the 2019 peak value of $14,000.
However, before Bitcoin traders can look forward to a retest of the $14k price level, BTC has to go through another difficult zone between $12,900 and $13,100.
For a better feel of Bitcoin’s price movement, the 6-hour BTC/USDT chart below will be used to provide clues as to what the future holds for BTC.
(Click image for larger view)
From the chart, the following can be observed.
- As explained by Mr. Bollinger, Bitcoin’s rally above $12k was picture perfect.
- BTC broke the ascending wedge as anticipated.
- Bitcoin’s current price at $12,200 is above the 50, 100, and 200 moving averages confirming a bullish environment.
- However, the 6-hour MACD and MFI point towards some exhaustion for Bitcoin on the 6-hour chart.
- Trade volume is also in the red highting of a possible dip to the $12k area to test this area as support.
However, zooming out to the daily MACD, it is observed that it is about to cross in a bullish manner hinting that BTC could be gearing up for another move to retest its recent peak of $12,500. If the $12,500 resistance area is broken, Bitcoin could well be on a path to retest the $13,000 area.
As with all analyses of Bitcoin, traders and investors are advised to use stop losses and low leverage when trading on the various derivatives platforms.
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Original article posted on the EthereumWorldNews.com site, by John P. Njui.
Article re-posted on Markethive by Jeffrey Sloe