While the FTX crisis is still shakingthe crypto market, some technical indicators point to a big move in Bitcoin in the future. What is it really?
Bitcoin is somewhat volatile
The crypto market has been hit since the fall of FTX. BlockFi’s latest bankruptcy is on the rise as we learn today. Bitcoin is currently suffering a very low volatility. At the time of writing, it trades for approx $16,400 up 2% in the last 7 days.
However, if we take different indicators into account, this situation may change. Bollinger Bands are widely used in trading. For its part, the Bollinger Band Width Percentile (BBWP) can measure the width of the latter and can give indications of upcoming volatility.
This is the last one lowest in over 6 years when we are interested in the time unit of 2 weeks on Bitcoin. This level was last seen in 2016 which led to a strong surge in Bitcoin in the following weeks. Indeed, the asset was more than 80% won over the next four weeks as noted by crypto analyst Mustache.
It’s been more than 6 years, since the BBWP-Indicator was this low on Chart 2W $BTC.
At that time $BTC after 80% increase within 4 weeks.
A big move for Bitcoin is coming.🔥👀 pic.twitter.com/EE3NkpBK23
— 𝕄𝕦𝕣𝕚𝕚𝕚𝕒𝕚𝕒𝕚𝕖𝕖 🧲 (@el_crypto_prof) November 28, 2022
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Patience is required
Another interesting indicator: the Price Momentum Oscillator. The second is based on the calculation of the rate of variation which is twice shifted using an exponential moving average.
Tardigrade Trader explains that this PMO is below zero for Bitcoin right now. This situation together with support in the form of a curve may cause a bounce according to the trader by 2023 or 2024. He estimates a possible peak of $24,000.
Price Momentum Oscillator (PMO) below zero, together with the curved support, will trigger a bounce in #Bitcoin.$BTC present in the PMO zone below zero and in contact with the curved support.#BTC #Crypts pic.twitter.com/6WwT8XqvNJ
— Tardigrade Trader (@TATrader_Alan) November 28, 2022
Earlier, the CCO (Cycling channel oscillator) entered the bottom of this bear market. Field seems best for a DCA before the next bounce according to Mags crypto analysis.
In terms of pure price action, Bitcoin ranges in between $15,500 and $18,000 from November 10 and the fall of FTX. The latter has had very measured volatility since that date.
This support around $15,500 is currently holding tight. despite several restarts. In the event that this support is lost, many observers expect a return to the $12,000 area.
And the rest of the market?
The rest of the market more or less follows the fate of Bitcoin block. Ethereum, number two in the market, is currently trading around $1200. It still shows a nice increase of 3.6% in the last 24 hours and 7% in the last 7 days. However, the latter remains locked in a range between $1,100 and $13,000 since the FTX crash.
Solana, which has been promised hell since the bankruptcy of Alameda and FTX, is experiencing a resurgence in form in the last few days. At the time of writing these lines, the SOL is trading around $13.4, up to more than 13% in the last 7 days. It seems to have found support around $12 and is still holding up.
The big winners of the moment are called Huobi Token, Dogecoin, Fantom or even Chainlink. the Huobi token is up over 45% in the last 7 days, it is the strongest advance of the top 100 of CoinMarketCap.com. After several difficult days following the FTX crash, the recovery signal is good and significant gains are being posted.
Dogecoin is also in good shape since Elon Musk took over Twitter. Memecoin Number 1 is up 30% in the last 7 days. It is currently trading at $0.10 per token. Apecoin gains more than 27% in the last 7 days, as for Fantom is more than 25% also in the last week. A welcome rebound after the massive fall that occurred after the FTX crash.
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