© Reuters. BTC Price Still Consolidating: Can it Break Out?
- BTC is showing a bullish movement using Triple MA, and Lucid SAR on a weekly scale.
- It has been two weeks since the dip, but BTC only recovered 25%.
- The recovery of has been slower than what happened to COVID times.
On Wednesday, an analyst confirms BTC price is still consolidating and questions if it can ‘break out’. Tone Vays, the analyst and derivatives trader discussed this on his youtube channel focusing on Momentum Reversal Indicator (MRI).
BTC Using Triple MA Forecast, MRI and Lucid SAR on a Weekly Scale | Source: Tradingview
For better understanding, MRI represents an evolution of many works and experiences that came before it. The alerts are not a buy/sell indication, traders need to understand how to trade the MRI indicator to use them properly.
He first looked at the price movement on a weekly basis, but he stated it is not very useful. Still, the analyst thinks the orange dot in the chart is showing a bullish sign.
It is really unfortunate when a warning and the buy itself come after the big rebound. This was something that is potentially expected. However, on this weekly scale, it’s really hard to rush into the bullish trade. Even with the MRI warning buy.
Apart from this, the analyst thinks Bitcoin’s daily chart keeps on getting interesting. There is a serious level of resistance and until Bitcoin can establish itself above the 200-day moving average, he says ‘I cannot rush into this trade’.
Tone Vays’ BTC daily chart from his live streaming (03:58) on Wednesday | Source: Tone Vays’ Channel
Furthermore, he also compared the recovery rate of last year’s COVID market crash and last week’s market dip. It can be recalled, in a span of one month, BTC dropped over 60% from February to March 2020. Then, it recovered 80% of the drop in a matter of two weeks from March 13th to 16th of 2020. The price went down from $10,000 to $4,000 during the drop, then recovered to 7,000.
However, the current recovery from Tesla’s news is not happening as quickly as last year. The BTC price dropped 54% in the past month from $65,000 to $30,000. Now, it has been two weeks, but BTC only recovered 25%. Significantly, the recovery has been slower than what happened to COVID times.
Most importantly, the moving average looks different when it’s compared to last year’s COVID down. This is because it was coming off a major consolidation already last year. However, in today’s moving average is literally poppy.
Source | BTC.D Tradingview
Lastly, he tackles Bitcoin Dominance which isn’t looking great. It is definitely looking bearish and it is going to breaks the lows shown on this chart above. Currently, Bitcoin is trading at $38,978.72 with $36,378,021,673 in the last 24 hours.
This article was first published on coinquora.com
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