All eyes in the cryptocurrency world are on the bitcoin price right now. The world’s leading cryptocurrency underwent promising momentum earlier in the week.
Despite pushing past $8,000, there was a big retrace a few days ago. It appears that dip is now over, although the momentum remains somewhat uncertain.
Bitcoin Price Volatility Remains
No one will ever claim that the bitcoin price momentum doesn’t offer any excitement . Even during sideways trading, there is plenty of uneasiness to contend with .This past week hasn’t seen much of sideways action, yet that is a good thing first and foremost.
With the value moving between $7,348 and $8,385, it has certainly been an interesting week. A $1,000 move up or down is usually interspersed with volatility. In the case of the bitcoin price, the push to $8,385 was followed by a dip to $7,710. That dip has been overcome again, as the value quickly returned to $8,000 and above.
For now, the week-long momentum still yields a 9.2% bitcoin price increase. Even though today’s momentum isn’t too exciting, things could be far worse. Remaining above $8,000 is crucial for bitcoin, yet there is no guarantee that this will happen.
BTC/USD Technical Indicators
Bollinger Bands: For most of today, the BBs have shown little to no action. The maw has shut again and a narrow channel has begun forming. This usually indicates a price breakout will occur, either for better or worse. Right now, it seems likely that the bitcoin price may drop to the low $8,000 range. as $8,107 is a tough resistance range.
Moving Averages: On the hourly chart, the moving averages show a looming convergence. The MA20 and MA50 are close to crossing again, which could lead to some bearish short-term momentum. The MA200 shows an incline, which is something a lot of traders will be rather happy with.
The daily bitcoin price chart paints a different picture. It shows a slightly declining MA200. Additionally, it shows a bullish crossover between the MA20 and MA50, albeit just barely. Overall, it seems as if this sideways to minor bearish pressure should materialize as the day progresses.
RSI: Not too much can be gauged from looking at the RSI today. Bitcoin has remained within its channel for several days now. There is still a bearish declination to look at, indicating a retest of the $8,000 level will happen at some point in the near future.