Technical indicators show that Bitcoin has taken a "Christmas market", and the currency price may continue to fluctuate slightly
In recent trading days, the price of Bitcoin has experienced ups and downs. First, it experienced a sharp fall over the weekend, and now it rebounded above $50,000. As the holiday approaches, cryptocurrency analysts are beginning to assess whether Bitcoin may be out of the so-called “Christmas market.”
In the weekly report, technical analyst Katie Stockton wrote, “Since April this year, the MACD weekly indicator has issued a’sell’ signal for the first time, which shows that the investment risk of Bitcoin is increasing at the end of the year.”
“From the perspective of historical data, MACD’s signal indicates that the probability of Bitcoin’s rise during the Christmas period may increase.” John Iadeluca, founder of Banz Capital, a multi-strategy investment fund, believes that Katie Stockton’s comments are certain. Of the truth.
MACD stands for Moving Average Convergence and Divergence, which is a technical indicator that integrates multiple moving averages to provide “buy” and “sell” signals.
Cryptocurrency investor and analyst Scott Melker also expressed some views on Bitcoin’s “Christmas market”, using technical indicators other than MACD for evaluation.
He said, “At present, Bitcoin is fluctuating in the range of US$42,000 to US$53,000. Unless Bitcoin can break through US$53,000 and turn this point into a support level, it can be expected that Bitcoin will be at Christmas and some time later. All will fluctuate in the aforementioned range.”
He pointed out that “RSI (Relative Strength Index) has not yet shown an’oversold’ signal on the daily chart, which may mean that there will be a downtrend in the short term.”
Sean Rooney, head of research at Valkyrie Investments, a cryptocurrency asset management company, is also not very optimistic about Bitcoin’s recent market. “Before the end of this year, Bitcoin is unlikely to return to record highs unless Bitcoin regains the range of $53,000 to $60,000.”