Bitcoin looks at an average of 200 days after the three-day price rise

Rising signals have emerged for Bitcoin, favoring the continued rise in prices towards the 200-day simple moving average (SMA), widely observed, according to technical analysis by Katie Stockton, founder and managing partner of Fairlead Strategies.

The daily chart shows that the main digital asset has risen from $ 38,500 to $ 42,200 in the past three days, defending support for the Ichimoku cloud.

Created by Japanese journalist Goichi Hosoda in the late 1960s, the Ichimoku cloud consists of two lines: Main Span A and Main Span B. Both are drawn 26 days before the last candle. The indicator is widely used to identify support and resistance, with crosses above or below representing a warning of bullish or bearish breaks.

The latest bullish defense is supported by positive signals from technical tools such as the stochastic and MACD histograms.

“Bitcoin had strong cloud-based support near $ 40,000 and generated a sell-off signal from the daily stochastic after a three-day rise, supporting a short-term bullish bias,” he said. say Stockton in an email. “The daily MACD is also pinching, reflecting an improvement in the short-term momentum that supports an upward move towards the upcoming resistance of about $ 48.1,000, as defined by the 200-day MA.”

In technical analysis, stochastics are indicators ranging from 0 to 100, helping traders to identify the conditions of overselling and overbought and the points of entry and exit of the trade. An asset is considered oversold when the stochastic falls below 20 and overbought when it exceeds 80. A higher turnaround below 20 is considered a buy signal.

The MACD (Moving Average Convergence Divergence) histogram is used to identify trend changes and trend strength. Positive / negative changes in the indicator indicate changes in the up / down trend. Meanwhile, the “pinch”: falling bars or lower highs above the zero line and higher lows below the zero line represent a bullish and bearish depletion.

The three-day increase highlighted the 200-day SMA at $ 48,000. At the end of March, the average was difficult to break, stopping the recovery rally from close to $ 37,500.

On Monday, Monday’s low of $ 38,550 is the level to beat for sellers.

Bitcoin was trading at about $ 42,300, which was a 2% gain per day, according to CoinDesk data.

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