bitcoin price It is doing its best to climb above $40,000 since the major crash in May. So far, the phrase “sell in May and go away” has worked like a charm, and it may take longer before the coins are bought again, making it a profitable strategy.
This is because the top cryptocurrency is struggling to hold above the mid-Bollinger Band, and if it fails to hold, it could result in another retest of the bottom of the band. Another re-test may eventually push the price per coin Clean sweep before reversal, below support.
Deja vu: why there may be a historic step on the horizon
To anyone who has been around the crypto market during 2019, this sounds like deja vu. Above $10,000, it was not uncommon for traders to claim that the next stop was $100,000 or more. They were wrong, and bitcoin crashed.
When that happened, and sentiment turned bearish, the cryptocurrency reversed course with the third most profitable day on record. Anyone familiar with October 2019″china pump“Knows that things can change rapidly, even when they seem for the worst.
Indicators are primed in the same way And so is the sentiment, and the latest rally after the morning star reversal and dragonfly doji shows a lot of bullish signals.
Why then, Bollinger Bands are warning of another possible collapse – the China pump matches much more closely than current price action.
Could Bitcoin sweep lows one more time? | Source: BTCUSD on TradingView.com
Bitcoin price may be catapulted lower before retesting higher
Bollinger Band Produced by John Bollinger Is a versatile technical analysis tool that measures volatility, highlights support and resistance, and much more. When the bands tighten or squeeze, it is a sign that a big move is on the way, and so far the instrument is indicating that something shocking should happen soon. but when?
Related Reading | Bitcoin Daily Dragonfly Doji Gives Hope for a Bullish Reversal
Not yet, if the middle Bollinger Band – a simple moving average – has been lost as support. During the introduction of the historic China Pump, the mid-Bb was lost not once but twice.
Indicators also match the last time Bitcoin got so confusing | Source: BTCUSD on TradingView.com
Bollinger Band Width On similar lows, but should hang there for a while. BB% may sweep the current low as it did before catapulting upwards back in 2019.
Lastly, the LMACD is also showing a similar pattern and if another bearish crossover occurs, it could a huge net Like last time. But for now, beware of another shock to the lows before a reversal.
Featured image from Deposit Photos, Charts from TradingView.com