Bitcoin’s price has remained stuck in the same relatively boring range over the past several days. Let’s check out what the charts might say about the state of bitcoin.
Bitcoin’s daily candle chart (BitMEX) shows price has been rangebound for almost two weeks now (yellow box). Volatility is showing similarities to last November when bitcoin’s price appeared to be cemented in the $6,000 range.
The Relative Strength Index (RSI – purple line on the bottom with a white box) also shows little action, floating in the middle of overbought and oversold ranges.
Bitcoin’s 4-hour candle chart does not appear to reveal much in terms of meaningful price action. It seems as though bots currently run the show with low liquidity trading spikes, as seen in the long wicks above.
These long wicks can make for nasty fakeouts and stop-loss runs. (Stop loss runs occur when the price hits a certain level just past support or resistance with a wick, and then reverses in the opposite direction.)
Price also currently is fluctuating around the 20-period moving average (red line) as part of the Bollinger Band indicator.
The 1-hour chart showed the outer Bollinger Bands (blue lines) tightening toward the middle, close to price action just several hours ago. Generally, this can often lead to incoming volatility in either direction.
As seen by the two yellow arrows, the Bollinger Bands are currently expanding in opposite directions. Traditionally speaking, this might indicate increased volatility and a noticeable move in price is underway. Although it could just be another fakeout.
It also appears as though bitcoin’s price faced rejection off the 20-period moving average (red line) inside the Bollinger Bands, leading to a slight price drop.
Bitcoin ETF withdrawn
According to news released just recently, the Chicago Board Options Exchange (CBOE) has decided to withdraw its bitcoin exchange-traded fund (ETF) listing application for the VanEck/SolidX product.
This particular ETF has been postponed several times. It is interesting to note that bitcoin’s price did not move drastically in either direction after the ETF news release.
Influencer Josh Rager noted in a recent tweet that this news must already have been accounted for in bitcoin’s current price, leading to anti-climactic price response. “With no price action response it’s assumed that this was expected and priced in the market,” Rager tweeted.
As seen in the updated 1-hour chart, prices have not moved significantly compared to the 1-hour chart posted earlier in the article.
*This article includes opinions from the author and is not in any way financial advice. Writing about price levels is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever. Proceed only at your own risk.