Bitcoin: The Correction that Never Was?
“What if they gave a war and nobody came?” was a popular saying with protestors in the 1960s. Something similar could be asked of Bitcoin today: “What if they gave a selloff and nobody came?”
Consider how BTCUSD knifed violently lower on September 7. Then consider the lack of follow-through on the daily chart, with prices quickly holding their lows from just three weeks prior. It was a wasted opportunity for the bears, showing a lack of interest in lower prices. A lot of sound and fury, signifying nothing.
The $42,900 level BTCUSD held is important because it almost exactly matches the February 28 low when prices were consolidating before their push toward $60,000. Old support returns to become new support again.
The next big pattern is the 50-day simple moving average (SMA) rising up through the 200-day SMA. That’s a bullish “golden cross” that undid the bearish death cross from mid-June.
Meanwhile, two sentiment indexes (Alternative.me and santiment) have swung to the most bearish “fear” levels since late July. That could suggest few sellers remain.
Finally, the crash pushed stochastic down to oversold levels from which it’s now recovering. The bulls may also need a few more days for MACD to start rising. But overall BTCUSD has behaved well following the recent crash (consistent with extreme negativity).
The correction may be over sooner than you might otherwise think.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Consider how BTCUSD knifed violently lower on September 7. Then consider the lack of follow-through on the daily chart, with prices quickly holding their lows from just three weeks prior. It was a wasted opportunity for the bears, showing a lack of interest in lower prices. A lot of sound and fury, signifying nothing.
The $42,900 level BTCUSD held is important because it almost exactly matches the February 28 low when prices were consolidating before their push toward $60,000. Old support returns to become new support again.
The next big pattern is the 50-day simple moving average (SMA) rising up through the 200-day SMA. That’s a bullish “golden cross” that undid the bearish death cross from mid-June.
Meanwhile, two sentiment indexes (Alternative.me and santiment) have swung to the most bearish “fear” levels since late July. That could suggest few sellers remain.
Finally, the crash pushed stochastic down to oversold levels from which it’s now recovering. The bulls may also need a few more days for MACD to start rising. But overall BTCUSD has behaved well following the recent crash (consistent with extreme negativity).
The correction may be over sooner than you might otherwise think.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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