Bitcoin (COIN:BTCUSD) went seriously downwards in March 2020 when it
moved briefly below the $400 level. Since then, price went upwards gradually until
May 20; and it has consolidated till now.
ADX period 14 is almost above the level 40, showing a considerable amount
of momentum in the market. DM+ is also above DM-, which signals bulls’
domination. MACD default parameters, has neither the histogram nor the signal
lines above or below the zero line. The signal lines and the histogram need to
move significantly above or below the zero line before a directional bias can
be formed.
Based on historical records, investors thought that BTC would skyrocket significantly
following its recent halving, but they have been disappointed big time. Yes, BTC
would eventually go upwards (even beyond what most analysts think), but no-one
knows when that will be. It may be next week, and it may be next year or even
after 3 years. Bakkt and DeFi are just noises.
This cryptocurrency has a knack for going against investors’ expectation:
It would go upwards only when most people have given up on it. What happened in
2017 (astronomical gains) was contrary to most investors’ expectation and what
happened in 2018 (significant losses) also contradicted what most investors
expected. The year 2020 will not be different.
Right now, BTC is ranging and it would break out eventually, most
probably to the upside. However, the gains may not be as significant as
investors want, and it may nosedive following that.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Trading realities: Trading realities
Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha
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