Bitcoin's Bullish Turnaround Predicted: Key Indicators to Watch
Summary:
Veteran trader Matthew Hyland anticipates bullish momentum for Bitcoin (BTC) despite its recent slump. Hyland cites narrowing Bollinger bands and a significantly low daily relative strength index (RSI) as indicators for an upcoming market turnaround. However, a potential bearish shift signaled by the moving average convergence divergence (MACD) could upset the positive outlook.
Veteran trader Matthew Hyland has voiced his expectation for upcoming bullish activity in Bitcoin (BTC) in recent remarks on X social media platform. Although Bitcoin's value dipped to $41,650 throughout the festive season, Hyland suggests a soon-to-occur market turnabout based on key BTC price indicators. These indicators, the Bollinger bands and the relative strength index (RSI), previously predicted BTC's successful rallies in these past months. Scarce Bollinger bandwidth and a daily RSI, which is its lowest in two months, are the main signs he presents intending to support his bullish forecast.
Regularly utilized to analyze market volatility, Bollinger bands can provide hints concerning a potential surge in market unpredictability. Recently, the daily Bollinger bands have been narrowing, a phenomenon that usually, if not instantly, forecast increased volatility. Observations earlier this year noted that the bands fell into an extremely tight position, prior to Bitcoin's boom over the $30,000 mark.
Meanwhile, the RSI, a valuable indicator for BTC traders throughout 2023's Q4 bullish rally, has experienced a significant reset on daily time frames. Its current reading is at a stable 53, well under the "overbought" line of 70 and even more removed from its 76 peak earlier this month. This offers favorable signs on longer time frames, as expert trader Peter Brandt highlighted last week.
However, the moving average convergence divergence (MACD) might disrupt the positive prospects for Bitcoin enthusiasts as it currently signals a potentially bearish turn on a three-day timeframe. Despite this discouraging view, BTC price action could invalidate this signal in the coming days – a result Hyland urges traders to look out for.
This news should not be interpreted as either investment advice or suggestions. Trading and investing carry inherent risks, hence it is advisable for individuals to conduct independent analysis prior to making any financial decisions.
Published At
12/27/2023 11:42:48 AM
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