Crypto markets appear ready for a renewed bullish price run as indecisive price action winds down. Bitcoin is currently flashing oversold, as the digital asset’s ranging price action appears to be coming to an end.
Crypto markets, as expected, have gone through a period of consolidation. Though the cycle of indecisiveness ran a tad longer than anticipated, the consolidatory price action seems to be winding down.
Some digital assets, this Monday, have begun to show signs that they are about to come out of conclave. Having blown black smoke for about a fortnight, the market seems to be coming out of a rest period and will likely resume bullish price action – what, with most of the markets’ technicals indicating that cryptocurrencies have found demand.
The top 30 digital assets are in the green, at time of writing, with the HedgeTrade market prediction platform token $HEDGE being the only one flashing red (down 25.82% from a high of $2,24.) Benchmark digital asset, Bitcoin is currently up 1.52%, with the price at $36,520.
Runner-up, Ethereum – on the other hand, is up almost four percent, and valued at $2,819. The Cardano network’s $ADA, and legally-embattled decentralized payment rail, Ripple’s $XRP token are up 3.17% and 2,91%, respectively, at press time.
To get a feel of what markets might do next, it is always a good idea (it may behoove one to make it a rule of thumb) to be sure of the $BTC markets’ direction prior to making any calls. Here is what we observe.
On the weekly chart, price action appears to be forming the third candle in a new upward move. If – at the weekly close – the candle is greater than the preceding pair of green candles – doji – one will have more confidence that price action has resumed bullish momentum. If upward motive price action is indeed in play, it may come to completion as a 3rd wave on the Monthly time frame.
Indicators certainly seem to support this hypothesis, as price action is still well above the Ichimoku cloud, with the senkou moving averages diverging widely, indicating impending upward volatility. The Tenkan line has just turned up, still above the Kijun, showing that the massive price dip,a few weeks ago, barely weakened overall market confidence.
The Stochastic tells us that the $BTC market is thoroughly oversold, moving averages having triple bottomed and pearing upward, which suggests bullish price action in coming weeks. Our Fib projection suggests that veteran trader Peter Brandt’s $100,000 bitcoin value prediction may actually be in play.
The daily chart indicates that the two doji candles on the Monthly chart were in ranging price action that formed an ascending triangle, which is usually a continuation pattern. A breakout of the candle is what most traders will be expecting now, entering after the breakout retests the $37k – $36k price range may – in coming weeks – put one in decent profit. A break above $42 may be a more reliable entry signal for a more cautious trader.
